Summer Training Project Report

On
“Analyzing Consumer Decision Making Process In
Insurance Services”
By
“Abhay Singh”
“2200520700002”

Under the guidance of

“Dr. Durgawati Kushwaha”

In partial fulfilment of the requirement for the award of the

Degree of

Master of Business Administration

Submitted at

DEPARTMENT OF BUSINESS ADMINISTRATION

INSTITITUTE OF ENGINEERING AND TECHNOLOGY
JANKIPURAM LUCKNOW, UP-226021
i
 Department of Business Administration
Institute of Engineering & Technology Lucknow

STUDENT DECLARATION

I undersigned, hereby declare that the project titled ‘Analyzing Consumer

Decision Making Process In Insurance Services’ submitted in partial fulfilment

for the award of Degree of Master of Business Administration is a bonafide record

of work done by me under the guidance of Dr. Durgawati Kushwaha. This report

has not previously formed the basis for the award of any degree, diploma, or

similar title of any University.

Place :

Date :

Signature
(Abhay Singh)
(2200520700002)

ii
INTERNSHIP CERTIFICATE

iii
 Department of Business Administration
Institute of Engineering & Technology Lucknow

CERTIFICATE FROM INSTITUTE

This is to certify that Mr. /Ms. Abhay Singh, Third semester student of Master of
Business Administration, Institute of Engineering & Technology, Sitapur Road,
Lucknow has completed the project report entitled ‘Analyzing Consumer
Decision Making Process in Insurance Services’ in partial fulfilment of the
requirements for the award of the Degree of Master of Business Administration.

Date:
Place:

Dr. Durgawati Kushwaha

(Convener)

iv
 Department of Business Administration
Institute of Engineering & Technology Lucknow

CERTIFICATE FROM FACULTY GUIDE

This is to certify that Mr. /Ms. Abhay Singh, Third semester student of Master of
Business Administration, Institute of Engineering & Technology, Sitapur Road,
Lucknow has completed the project report entitled ‘Analyzing consumer decision
making process in insurance services’ towards partial fulfilment of the
requirement for the award of the Degree of Master of Business Administration
under my supervision.

Date:
Place:

Dr. Durgawati Kushwaha

(Convener)

v
 PREFACE

This project delves into the intricate landscape of consumer decision-making

within the insurance industry. Motivated by the need to understand the factors

influencing choices, the study focuses on individuals aged 14 to 50 in New Delhi.

Using a descriptive research design and a quantitative approach, data from 533

participants is analyzed with Microsoft Excel. The findings aim to contribute

insights beneficial to both insurance providers and policyholders, enhancing the

understanding of decision dynamics in the insurance domain.

vi
 ACKNOWLEDGEMENT

This report is an outstanding prospect to convey my gratefulness to those people

whose timely help and guidance went a long way in finishing this project work

from commencement to achievement.

I would like to thank the Director of Institute of engineering and technology,

Lucknow: Prof. Vineet Kansal and our Coordinator of Department of Masters of

Business Administration: Prof. Virendra Pathak. This was really a good way of

learning and I really learned a lot from this project.

I would also like to thank to my mentor and Convener of Masters of Business

Administration: Dr. Durgawati Kushwaha ma’am for rendering their valuable

time and providing me full knowledge which was needed in order to successfully

completion of this report.

vii
 TABLE OF CONTENTS

PageNo.

CHAPTER I (Introduction)
1.1 Overview 01
1.2 Industry Profile 02
1.3 Company Profile 14
1.4 SWOT Analysis 22
CHAPTER II (Literature Review)
2.1 Review of Literature 24
2.2 Conceptual Understanding 27
CHAPTER III (Research Methodology)
3.1 Problem Statement 31
3.2 Objectives of the Study 32
3.3 Hypothesis 33
3.4 Research Design 34
3.5 Data Collection & Analysis Tool 36
CHAPTER IV (Data Analysis & Interpretation)
CHAPTER V
5.1 Findings 52
5.2 Recommendation/Suggestions 55
5.3 Limitations 56
5.4 Conclusion 57
REFERENCES 58

viii
 CHAPTER : I (Introduction)
1.1 Overview

Project Title : Analyzing consumer decision making process in

insurance services
Intern Name : Abhay Singh
Company : AIM India Pvt Ltd
External Mentor Name : Shivani Gupta
Internal Mentor Name : Dr. Durgawati Kushwaha Ma'am
Internship Duration : August 23, 2023, to October 16, 2023

I undertook this internship project titled "Analyzing consumer decision-making process in

insurance services" at AIM India Pvt Ltd. The project duration was from August 23, 2023, to

October 16, 2023. Throughout the internship, I collaborated with my external mentor, Shivani

Gupta, and my internal mentor, Dr. Durgawati Kushwaha Ma'am.

Project Summary:

The main objective of the project was to explore and understand the factors influencing

consumers' decision-making processes when it comes to purchasing insurance policies. I

designed a questionnaire and collected responses through online platforms and telephonic

interviews. The project not only provided valuable insights into consumer behavior in the

insurance sector but also contributed to my personal learning and achievements during the

internship.

1
1.2 Industry Profile

The Insurance in India refers to the market for insurance in India which covers both the public

and private sector organizations. It is listed in the Constitution of India in the Seventh Schedule

as a Union List subject, meaning it can only be legislated by the Central government. The

insurance industry of India consists of 57 insurance companies of which 24 are in life insurance

business and 33 are non-life insurers. The Confederation of Indian Industry states that the

insurance sector of the country has been witnessing a consistent growth rate of late and its

present worth is 41 billion US dollars.

The industry has of late achieved a yearly growth rate within 32 and 34 percent and this makes

it the 5th best among emerging economies around the world. The various entities of the industry

are also bringing out newer products on a regular basis to attract their customers. As per rules,

the upper limit of foreign direct investment permitted in this sector is 26 percent. However, this

has to be done through the automatic route and the investor needs a license from Insurance

Regulatory and Development Authority (IRDA).

Among the life insurers, Life Insurance Corporation (LIC) is the sole public-sector company.

Apart from that, among the non-life insurers there are six public sector insurers. In addition to

these, there is sole national re-insurer, namely, General Insurance Corporation of India (GIC

Re). Other stakeholders in Indian Insurance market include agents (individual and corporate),

brokers, surveyors and third-party administrators servicing health insurance claims.

2
❖ Top Companies in Insurance Sector

Company Market share

LIC 50%
ICICI 10%
SBI 5%
Bajaj 4%
Reliance 5%
HDFC 6%
Birla 4%
Max 3%
Tata 2%
Met Life 1%
Kotak 2%
India first life insurance 1%
Others 7%

1% Market share
1% 2%
2% 7%
3%

4%
6%
50%
5%

4%
5%

10%

LIC ICICI SBI Bajaj

Reliance HDFC Birla Max

Met Life Kotak India first life insurance

Tata
Others

3
❖ Evolution of Insurance sector
• All life insurance companies were nationalized to form LIC in 1956 to increase penetration

and protect policy holders from mismanagement

• The non-life insurance business was nationalized to form GIC in 1972

• Malhotra Committee recommended opening up the insurance sector to private players

• IRDA, LIC and GIC Acts were passed in 1999, making IRDA the statutory regulatory body

for insurance and ending the monopoly of LIC and GIC

• Post liberalization, the insurance industry recorded significant growth; the number of private

players increased to 44 in 2012

• The industry has been spurred by product innovation, vibrant distribution channels, coupled

with targeted publicity and promotional campaigns by the insurers

• In December 2014, Government approved the ordinance increasing FDI limit in Insurance

sector from 26 per cent to 49 per cent. This would likely to attract investment of US$ 7-8

billion

• In 2015, Government introduced Pradhan Mantri Suraksha Bima Yojna and Pradhan Mantri

Jeevan Jyoti Bima Yojana

• Government introduced Atal Pension Yojana and Health insurance in 2015

• As per Union Budget 2016-17, new health insurance scheme under the National Health

Protection Scheme has been introduced

• In Union Budget 2017, government increased the coverage from 30 per cent to 40 per cent

under Pradhan Mantri Fasal Bima Yojna.

• Insurance companies raised more than US$ 5 billion from public issues.

4
❖ India insurance industry growth in last few years
The life insurance companies have performed the best when it comes to growth with an increase

of almost 70% in new premium that has been collected in the initial 5 months of 2012.

As per IRDA data, in April-August 2010 the insurance companies earned $11.73 billion in new

premium - in the corresponding period in the previous year the amount stood at 6.9 billion dollars.

LIC, a state held insurer, had been the biggest profit maker at that time with an addition of 88%

to their existing business. The privately-owned insurers together had seen a leap of 34% to their

policy sales.

ICICI Prudential earned 576.60 million dollars at that time. During April-August 2009 SBI Life

had earned $379.20 million in sales of new policies and that figure went up to $531.87 million

in the corresponding period in 2010 making it an increase of 40%. HDFC Standard Life also

experienced a good growth of 54% in new sales.

IRDA data shows that between April and October 2010 the general insurance industry

experienced a year-on-year growth of 22.76% with regards to underwritten gross premium.

The total value of that premium was 5.29 billion dollars while the same figure stood at $4.31

billion in April-October 2009. For the public-sector companies, the year-on-year growth rate was

21.09 percent between April-October 2010 and April-October 2009.

In the same period the privately held insurers saw an increase of 25.19 percent in terms of

premium collected. Among the publicly owned entities, New India Insurance was one of the

better performers with a premium income of 916.77 million dollars in April-October 2010.

At the same period in 2009 they had earned 770.25 million dollars which implies a growth rate

of 19.04%. The IRDA Summary Report of Motor Data of Public and Private Sector Insurers

2009- 10 states that in the same period almost 28.4 million policies were sold and the aggregate

worth of premium collected was $2.31 billion.

5
 The health insurance sector, according to the RNCOS' research report named "Booming Health

Insurance in India" posted unprecedented growth rates in 2008-09 and 2009-10. The report also

estimates that between the 2009-10 and 2013-14 the sector would see a compound annual growth

rate (CAGR) of at least 25%.

❖ India’s current market continues to be strong

• The insurance industry is expected to reach US$ 280 billion by 2020. In 2016, around 46

private players were operating in the industry, while Life Insurance Corporation accounted for

72.61 per cent of the country¡¦s insurance market.

• Individual single premiums received increased from US$ 0.16 billion in 2015 to around US$

1.02 billion in 2016.

• Indian Government announced its plans to divest US$ 1.63 billion worth of stakes in PSU

general insurance companies to execute the steep disinvestment target of US$ 10.78 billion in

FY17.

❖ India insurance industry contribution to GDP

Experts are of the opinion that around the world the insurance industry contributes around 4.5%

to national GDPs. They have questioned the logicality of opinions that in India the contribution

6
 can be higher saying that there are other important sectors like education, defense, and health

that cannot be undermined in this context.

They have ruled out possibilities that the sector can contribute 10% to India's GDP. The

Chairman of IRDA, Hari Narayan has ruled out any such possibility asking if India's GDP growth

will be that much in the next few years ahead.

The IRDA states that in India land and gold are more preferred as forms of investment. Narayan

feels that if the insurance sector is to do well in terms of contribution to GDP then more people

should be convinced about its capability to provide good ROI (return on investment).

❖ In terms of policies sold following are the top insurers in India

Company Policies sold ( in financial year 2020-21)
LIC 20404281
Future Generali Life 100143
ICICI Prudential 785938
Met Life 98904
Reliance Life 698109
Star Union Dai-ichi 82037
Bajaj Allianz 640483
Shriram Life 73490
Birla Sunlife 589855
Bharti AXA Life 69151
SBI Life 491927
Aegon Religare 47332
Max New York 405662
IDBI Federal 45833
HDFC Standard 397408
Canara HSBC OBC Life 44899
Tata AIG 199275
DLF Pramerica 43299
Kotak Life Insurance 199614
IndiaFirst 38498
Aviva 100216
Sahara Life 36228
Edelweiss Tokio 1968

7
❖ India insurance industry - some key findings
Following are some important findings from World Bank regarding the condition of insurance

industry in India:

• Between 2011 and 2021 the yearly GDP growth was approximately 7.56%

• At the same time, the ratio of gross savings to GDP was 33%

• Middle class saw the quickest growth

• The life expectancy rate of people went up and urban development happened at almost 54%.

• In 2015 rate of premium growth came down to 4.2% and compared to global standards the

premium share was pretty low

• Major operational issues for insurers were expenditure control, claims settlement procedures,

improving investment yields, and capital requirements

• In the 2019-20 fiscal the life insurance industry grew by 4.20% while the general insurance

industry increased by 8.10%

• During that time the paid-up capital (private total) for the life insurance sector was INR

• 236.57 billion while the paid-up capital (industry total) was INR 236.63 billion.

• In 2019-20 the paid-up capital (private total) for the general insurance sector was INR

• 39.56 billion while the paid-up capital (industry total) was INR 67.06 billion.

• In 2019-20 the operating costs of privately owned life insurers was INR 159.62 billion while
the total life insurance industry expense was INR 329.42 billion.

• In the same time the privately owned general insurers spent INR 39.32 billion from an industry
total of INR 106.20 billion.

• In 2019-20 the privately held life insurers paid benefits and claims worth INR 312.51 billion
while the industry aggregate was INR 1425.24 billion.

8
• At the same time the private general insurers paid benefits and claims worth INR 99.37 billion
while the industry total was INR 295.36 billion.

9
❖ Top Insurance Policies
Company Product
LIC Jeevan Vaibhav
ICICI Prudential ICICI Pru iCare
Reliance Private Car Insurance Reliance Travel Care for
Reliance General Insurance Students
Bajaj Allianz CashRich
Family Floater Health Guard Plan
Car Insurance
HDFC Life Click2Protect
HDFC LIFE SMART WOMAN PLAN
Tata AIG Insurance Tata AIG Motor Insurance
Tata AIG Travel Insurance
Tata AIG Wellsurance Family
Kotak Life Insurance Kotak Assured Protection Plan
Kotak Assured Income Plan
Kotak Assured Investment Plan
Aviva Aviva Health Secure
Aviva i-Life
Future Generali Future Generali Smart Life
Future Generali Health Suraksha
MetLife Retirement Plans
Met Monthly Income Plan
Star Union Dai-ichi Life Insurance Suraksha Kavach
Shriram Life Insurance ShriLife
Wealth Plus
Money Back
Shriram Ujjwal Life SP
Bharti AXA Bharti AXA Life eProtect
Aegon Religare iTerm
IDBI Federal Termsurance
Wealthsurance
Childsurance
Lifesurance
Healthsurance
Incomesurance
Loansurance
Homesurance
Bondsurance

10
 Microsurance
Canara HSBC OBC Life Insurance Dream Smart Plan
Grow Smart Plan
Future Smart Plan
Secure Smart Plan
Smart Sanchay Plan
DLF Pramerica Life Insurance Income Rakshak
DLF Pramerica Family Income
DLF Pramerica Family First
DLF Pramerica U-Protect
IndiaFirst Life Insurance IndiaFirst Maha Jeevan Plan
Sahara Life Insurance Sahara Vatsalya-Jeevan Bima
Apollo Munich Health Insurance OptimaRESTORE
Star Health Insurance Family Health Optima
Star Unique Health
Senior Citizen Health Insurance
IFFCO TOKIO General Insurance Auto Protector Policy
Individual Medishield Policy
New India Assurance Householder's Policy
Motor Insurance Policy
Overseas Mediclaim Policy
Fire & Machinery Policy
Industrial All Risk Policy
Shopkeeper's Policy
Oriental Insurance Oriental's Motor Insurance Policy
Happy Family Floater Scheme
National Insurance Car Insurance
Cholamandalam MS General Chola MS Private Car
Insurance
Chola MS Student Travel
Chola MS Family Healthline
HDFC Ergo Travel Insurance
HDFC Ergo Health Suraksha
Universal Sompo General Insurance
Householder's Insurance Policy
Shopkeeper's Insurance Policy
Motor Insurance Policy
Individual Health Bills
L&T Insurance my:health Medisure Prime Insurance

11
❖ India insurance industry major problems
Following are some of the major problems plaguing the insurance industry in India:

• Focus on actuarial pricing

• Regulatory misunderstanding

• Investment regulations

• Solvency regulation

• Claims settlement procedures

• Data clarity

• Distribution channel issues

❖ Porter’s Five Forces Model of Insurance Sector

Competition in an industry is rooted in its underlying economics, and competitive forces exist

that go well beyond the established combatants in a particular industry. Customers, suppliers,

potential entrants, and substitute products are all competitors that may be more or less prominent

or active depending on the industry. The state of competition in an industry depends on five

basic forces that are as follows:

1. The threat of new entrants

• Other financial companies can enter the industry

12
 • Overall threat is medium given that entry is subject to license and regulations

2. The bargaining power of buyers/customers

• Bargaining power of customers especially corporate is very high because they

pay huge amount of premium

3. The threat of substitute products

• Similarity in services makes switchover a potent threat

• Investment oriented customers have switched to other avenues

4. The amount of bargaining power suppliers have

• Supplier being the distributor or agent have high bargaining power because

they have customer database and can influence customers in making choices

5. The intensity of the competitive rivalry

• Insurance industry is becoming highly competitive with 52 players operating

in the industry

• Companies are competing on price and also using low price and high returns

strategy for customers to lure them

13
 1.3 Company Profile

Accrual Intelligence Manuals Group identity as the leading provider of professional wealth

advisory in India and abroad. AIM India delivers a one stop solution/ service to achieve financial

independence. There principle is to deliver high returns to our clients through our network of

government sector banks in India.

Aim India comprehensive wealth management is a high level professional service that combines

financial and investment advice in accounting, taxation services and retirement planning. Its

wealth management is much more than just investment advice as we encompass all parts of an

individual's financial life.

They coordinate all the services needed to manage client's money and plan for their own and

family's current and future needs, maintain and increase their wealth based on individual's

financial situation goals and comfort level with risk.

Aim India team offers an ongoing support and advice when your investment is successfully

done. They will keep you informed of changes in regulations that directly affect you and leaving

you to focus on strategies that maximize profitability and productivity in investment.

India headquartered & experts in Wealth Advisory & Internships

• Based in India

• Wealth Management Advisors

14
• Corporate Service Provider

AIM India is a dynamic culture-driven advisory group, specializing in wealth and business

expansion. Our focus is on helping

individuals navigate the dynamic

environment through training programs and a

team of exclusive corporate trainers. As a

leading advisory in India and abroad, our

principle is to deliver high returns to clients via our network with government sector banks.

With a wealth advisory firm, we aim to provide expert advice for achieving financial

independence.

➢ AIM India Vision

We aim to be the trusted advisor for clients, delving into their financial lives, understanding

goals, values, and dreams beyond the balance sheet. Our approach involves personal insight and

professional financial planning, serving as coaches to help clients reach their goals and attain

financial peace of mind.

➢ AIM India Mission

Our mission is to enhance the financial planning industry by educating financial advisors

nationwide. Through knowledge-sharing, we strive to create an environment where more clients

can benefit from comprehensive financial planning and adherence to a fiduciary standard.

❖ AIM India Services

o Internship Services

AIM India provides domestic and international internships, offering expertise in seamlessly

integrating RPAS operations into clients' business systems. Our experienced team, including

15
technical specialists and regulatory trainers, develops manuals, conducts analyses, and delivers

in-house and online training solutions.

o Compliance Services

AIM India's compliance experts offer comprehensive knowledge of corporate compliance needs

in dynamic Asian jurisdictions. Non-compliance risks fines and imprisonment. We specialize in

providing compliance services for companies with intra-regional operations and their regional

subsidiaries. We will leave you to concentrate on your core activities as we will be providing you

the following services:

• Company Constitution

• Meetings & Company Officers

• Maintaining Statutory Books & Registers

• Annual Filings with The Company Registrar

• Statutory Reporting

o Accounting Services

As businesses expand, accounting becomes complex. AIM India offers customized accounting

solutions with regional expertise and technical knowledge. Our experienced professionals and IT

systems ensure control and transparency, fostering regional growth through informed decisions.

Our Accounting Services are:

• Accounting and Bookkeeping

• Statutory Reporting

• Payroll and Expense Claim Management Services

• Bank Account Reconciliation

• Corporate Tax Compliance

16
o Taxation Services

Tax arrangements are complex, especially in nations with taxes at multiple levels. Cross-border

transactions require effective planning to minimize costs. AIM India's tax professionals offer

guidance on structuring business entities, revenue models, and navigating incentives, withholding

tax, and transfer pricing formalities. Our analytical understanding of taxation helps clients manage

their business taxation regime efficiently.

• Corporate Income Tax Returns

• Vat Returns

• Indirect Tax

• Withholding Tax

• Tax Optimizations

• Transfer Pricing

• Tax Advisory in M&A, Cross Border Investment, Tax Disputes etc.

o Training & Development Services

AIM India develops concise training strategies for small businesses, aligning with overall

objectives. We assess customer, competitor, and industry trends, conducting internal audits and

skills inventories to pinpoint specific training needs. Our approach involves task-based delegation,

ensuring targeted content for each job role.

o Recruitment Services

AIM India tailors strategies by understanding your organization's culture and business objectives.

Our regional consultants provide seamless recruitment services, offering expertise in client

identification, immigration processes, and valuable advisory on recruitment, remuneration,

retention, and regional work culture.

• Candidate Search
17
• Profiling

• Interview Coordination

• Employment Contract

• Immigration

• Advisory Service

o Consulting Services

AIM India's consultants offer due diligence for critical business decisions like M&A, investments,

and expansions in the evolving Asian market. We identify new advantages and mitigate risks for

businesses looking to connect globally. Our main services include due diligence for M&A,

investments, and expansions.

• Corporate Development & Finance

• Investment

• People & Management

• New Market/Partner/Vendor Evaluation

• Operations

• Technology

• Grant Assistance (for Indian & Foreign companies)

o Insurance Services

AIM India's insurers provide comprehensive coverage and risk assessment for businesses,

addressing natural disasters, political uncertainties, and technological risks. Our services focus on

minimizing expenses, reducing claims, and understanding uninsured risks.

• Risk Assessment

• Coverage

• Risk Management

18
• Corporate Insurance - Property, Pecuniary, Liability and Group

• Political Risk

• Professional Insurance

• Financial Risk

• Trade and Credit Risk

o Insurance Services

AIM India's insurers provide comprehensive coverage and risk assessment for businesses,

addressing natural disasters, political uncertainties, and technological risks. Our services focus on

minimizing expenses, reducing claims, and understanding uninsured risks.

• Risk Assessment

• Coverage

• Risk Management

• Corporate Insurance - Property, Pecuniary, Liability and Group

• Political Risk

• Professional Insurance

• Financial Risk

• Trade and Credit Risk

o Mutual Funds

AIM India provides updates and services for mutual funds, offering small investors access to

professionally-managed, diversified portfolios of stocks, bonds, and securities. All mutual funds

are SEBI registered, ensuring investor protection through strict regulations. Investors buy 'units'

representing their share in a scheme, with flexibility to purchase or redeem based on the fund's

fluctuating NAV. AIM India assists in navigating the best available options in the mutual fund
19
market.

o Retirement Planning

Retirement income planning involves Personal Planning for lifestyle satisfaction and Financial

Planning to identify income sources. AIM India assists early in the process, helping individuals

maximize opportunities and plan for retirement lifestyle choices. We provide answers regarding

adequate funds and income sources from government pensions, employment, and personal

investments.

o Wealth Advisory Services

AIM India's wealth managers, including Chartered Financial Consultants and Certified Financial

Planners, provide comprehensive wealth management services for high-net-worth individuals and

families. Our experts coordinate retail banking, estate planning, legal resources, tax professionals,

and investment management to enhance income, growth, and tax-favored treatment for the long

term. We guide clients on estate planning vehicles, business-succession planning, stock-options,

and the strategic use of hedging derivatives.

❖ AIM India Product

Aim India deals with India First life insurance Maha Jeevan product.

India First Life Insurance Company is a life insurance company in India. It is a joint venture

between two of India's public-sector banks – Bank of Baroda (44%) and Andhra Bank (30%), and

UK's financial and investment company Legal & General (26%). It was incorporated in

November, 2009. It has its headquarters in Mumbai India First Life made more than Rs. 2 billion

in turnover in just four and half months since the insurance company became operational. India
20
First Life insurance company is headquartered in Mumbai. The company is headed by the MD &

8% Return on Investment

CEO Ms.R.M. Vishakha.

Tax benefits under Sec 80c & Sec

Life Cover of 10(10)d
1 premium* (16-18)
times

21
1.4 SWOT Analysis

Strength
• Corporate collaborations

• Global presence

• Business growth

• Rise in per capita income

• Emerging middle-income group

Weakness
• Dominance of public sector

• Less promotions

Opportunities
• Creation of strong future growth

• Rise in income

• Rise in awareness

• Creation of stronger demand

Threats
• Economic crisis

• Entry of new NBFCs in the sector varying government policies

22
❖ Organizational Structure of AIM India

CEO

Director

Managers

Corporate Sales HR Area Manager Admin Manager

Manager

Interns Interns

❖ Sales Process Summary

Fixing appointment with potential customer.

Meeting with potential customer.

Follow-up through calls and 1-2 more meeting

with potential customer.

Closure and cheque taken from customer.

Insurance bond delievery to the customer

address.

23
 CHAPTER : II (Literature Review)
2.1 Review of Literature
❖ Introduction
Quality of life, a multifaceted construct, encompasses diverse elements such as health,

community life, gender equality, political freedom, stability, material well-being, family life,

and job security. In the context of developing countries, insurance against illness or death is

regarded as an additional indicator of quality of life. This literature review explores the attitudes

and perceptions of life insurance policyholders, with a focus on predictive factors shaping these

attitudes.

o Skinner and Dubinsky (1999)

Studies have primarily concentrated on predictors of attitudes among life insurance

policyholders. Variables such as consumers' perceived value, satisfaction, and purchase

decision-making responsibility emerge as critical factors influencing attitudes toward life

insurance. For instance, Skinner and Dubinsky's survey revealed that the wife's employment

status and the husband's education significantly discriminate between family members

responsible for insurance purchasing decisions.

o Patil (2003)

Patil's study brings attention to the low insurance coverage among agricultural groups and

agricultural labor. While highlighting the poor performance of certain children-related policies,

the study underscores the importance of effective product feature demonstrations by agents.

o Mushtaq (2005)

In the context of Indian banks, this study assesses customer satisfaction across five dimensions

of service quality. The findings reveal a significant gap between customer expectations and

perceptions of service quality, indicating a need for improvement.

24
o Namasivayam. (2006)

This study delves into the socioeconomic factors underpinning the purchase of life insurance

policies and policyholders' preferences for various types of policies. It identifies age,

educational level, sex, income level, occupation, and family size as significant factors shaping

policyholders' decisions.

o Smith, Kuhlemeyer and Allen (2008)

Perceived value, satisfaction, and decision-making responsibility have been highlighted as

pivotal themes in the literature. Consumers' willingness to pay for increased safety, their risk

perceptions, and the socioeconomic factors influencing the purchase of life insurance policies

contribute to the overarching understanding of policyholders' attitudes.

o Raman and Gayatri (2014)

Examining customers' awareness of new insurance companies, this study unveils demographic

insights, revealing the age distribution and professional background of insured respondents. It

also sheds light on the motivations behind purchasing insurance policies, emphasizing the role

of risk coverage, tax benefits, and investment.

o Sharma (2015)

Focused on the Eastern region of Uttar Pradesh, Sharma's study probes into the factors behind

the purchase of insurance products. A significant majority of respondents consider insurance

policies indispensable for risk protection, emphasizing the perceived importance of insurance

in mitigating uncertainties.

o Kumar (2015)

Kumar's study evaluates the rural penetration of Life Insurance Corporation of India (LIC) and

identifies challenges in implementation, growth trends, and social schemes. Despite rural-

25
 centric efforts, a limited range of insurance products tailored for the rural population is

highlighted.

o Najjar and Ram (2016)

Studies in the banking sector emphasize the importance of service quality in generating

customer satisfaction. Trustworthy behavior, commitment to service, efficient communication,

and skillful conflict handling emerge as crucial dimensions. Retention of customers is deemed

less costly than acquisition, driving organizations to adopt relationship marketing and customer-

specific strategies.

❖ Conclusion
The reviewed literature sheds light on diverse factors influencing the attitudes and perceptions

of life insurance policyholders. Perceived value, satisfaction, decision-making responsibility,

risk perceptions, and socioeconomic variables play pivotal roles. Insights from demographic

studies, rural penetration analyses, and banking sector research provide a nuanced understanding

of the multifaceted dynamics shaping the insurance landscape. As organizations increasingly

focus on relationship marketing and customer-specific strategies, the literature underscores the

ongoing evolution of the insurance sector in response to changing consumer needs and

expectations.

26
2.2 Conceptual Understanding

Introduction of Consumer buying behavior

Consumer buyіng behavіour refers to the process and factors that іnfluence consumers' decіsіons

and actіons when purchasіng products or servіces. Іt encompasses the varіous stages a consumer

goes through, from recognіzіng a need or desіre for a product to evaluatіng optіons, makіng a

purchase, and post-purchase evaluatіon. Understandіng consumer buyіng behavіour іs essentіal

for busіnesses to develop effectіve marketіng strategies and meet consumer needs. Here are

some key factors that influence consumer buying behaviour:

a. Personal factors

b. Psychological factors

c. 3.Social factor

d. Cultural factors

e. Marketing and advertising etc.

Types of consumers buying behaviour:

Consumer buying behavior can be categorized into several types based on the level of consumer

involvement and the degree of differences between brands or products. Common types include:

a. Routine response behaviour: Low-involvement purchases of frequently bought products

with minimal decision-making effort. Consumers have established preferences and make quick

choices (e.g., buying toothpaste).

b. Limited decision-making: Moderate-involvement purchases that require some

information search and evaluation. Consumers compare a few brands or options before deciding

(e.g., buying a new smartphone).

27
 c. Extensive decision-making: High-involvement purchases involving significant research

and evaluation. Consumers invest time and effort in decision-making for complex or expensive

products (e.g., buying a car or a house).

d. Impulsive buying: Spontaneous, unplanned purchases driven by immediate desires or

emotions. Consumers make impulsive purchases without much thought or research (e.g., buying

a candy bar at the checkout counter).

❖ Quality of Life and Insurance

Quality of life is a comprehensive concept encompassing various dimensions crucial for

individual well-being, including health, community life, gender equality, political freedom,

stability, material well-being, family life, and job security. In the context of developing

countries, insurance against illness or death emerges as an additional indicator of quality of life.

This conceptual understanding establishes the intricate relationship between an individual's

overall well-being and the protection offered by insurance against unforeseen adversities.

❖ Attitudes and Perceptions of Life Insurance Policyholders

The literature on the attitudes and perceptions of life insurance policyholders delves into

predictive factors influencing these attitudes. Central themes include consumers' perceived

value, satisfaction, and the responsibility for decision-making in purchasing insurance. This

conceptual framework recognizes the importance of individual perceptions, satisfaction levels,

and decision-making dynamics in shaping attitudes toward life insurance.

❖ Socioeconomic Factors and Policyholder Behavior

Socioeconomic factors play a pivotal role in influencing policyholder behavior in the insurance

landscape. Variables such as age, educational level, sex, income level, occupation, and family

size are identified as significant determinants affecting the purchase decisions of life insurance

28
 policies. This conceptual understanding highlights the complex interplay between individual

socioeconomic characteristics and their impact on insurance-related choices.

❖ Challenges in Agricultural Insurance and Product Features

Studies examining insurance coverage among agricultural groups underscore challenges in

reaching this demographic. The performance of specific insurance products designed for

children is evaluated, emphasizing the importance of effective product feature demonstrations

by agents. This conceptual framework recognizes the need for tailored insurance solutions and

effective communication strategies to address specific challenges within diverse demographic

segments.

❖ Rural Penetration and Growth Trends in Insurance

The conceptual exploration of rural penetration in the insurance sector involves analyzing

growth trends, social schemes, and challenges in implementation. Despite efforts to penetrate

rural markets, there is a recognition of the limited availability of insurance products tailored for

rural populations. This conceptual understanding emphasizes the need for targeted strategies to

bridge the gap and address the unique requirements of rural customers.

❖ Service Quality in Banking and Insurance

The literature emphasizes the importance of service quality in both the banking and insurance

sectors. Trustworthy behavior, commitment to service, efficient communication, and skillful

conflict handling are identified as critical dimensions influencing customer satisfaction. This

conceptual framework highlights the parallel challenges and opportunities in enhancing service

quality across different financial service industries.

29
❖ Relationship Marketing and Customer-Specific Strategies
The shift towards relationship marketing and customer-specific strategies is recognized as a

significant trend in the modern business context. The conceptual understanding acknowledges

the importance of retaining customers through personalized approaches, recognizing that

customer retention is often more cost-effective than acquiring new customers. This strategic

shift reflects a recognition of the evolving dynamics in customer expectations and the need for

tailored services.

❖ Conclusion
The conceptual understanding drawn from the reviewed literature underscores the intricate

relationship between quality of life and insurance, the multifaceted factors influencing

policyholder attitudes, and the significance of socioeconomic variables in shaping insurance-

related decisions. The challenges and opportunities in agricultural insurance, rural penetration,

and the importance of service quality in both banking and insurance sectors provide a

comprehensive view of the evolving landscape. The adoption of relationship marketing and

customer-specific strategies reflects a proactive response to changing consumer needs,

emphasizing the dynamic nature of the insurance industry.

30
 CHAPTER : III (Research Methodology)
3.1 Problem Statement
The insurance services sector, while pivotal in managing risk and uncertainties in the lives of

individuals, lacks a comprehensive understanding of the intricate factors that shape consumer

decision-making processes. Current research falls short in exploring the dynamic interplay of

cognitive, emotional, and external influences on consumers when choosing insurance products.

This knowledge gap hampers the industry's ability to tailor offerings and marketing strategies

effectively. Therefore, there is a pressing need for an in-depth analysis to decipher the

multifaceted aspects of consumer decision-making in the insurance domain.

31
 3.2 Objective of the Study

• To identify and analyze the key factors influencing consumer decisions in the insurance services

sector.

• To assess the impact of cognitive processes, including perception, attitude, and motivation, on

consumer choices.

• To examine the role of external factors such as economic conditions, regulatory changes, and

technological advancements in shaping consumer preferences.

• To gauge the level of consumer satisfaction and perceived value in existing insurance products.

• To explore demographic variations and their implications on consumer decision patterns in the

insurance industry.

32
3.3 Hypothesis

Hypothesis 1

Null Hypothesis (H0): There is no significant relationship between age groups and the

likelihood of purchasing insurance.

Alternative Hypothesis (H1): Different age groups exhibit variations in their propensity to

purchase insurance.

Hypothesis 2

Null Hypothesis (H0): Occupation does not impact the criteria individuals use for choosing an

insurance company.

Alternative Hypothesis (H1): Occupation influences the criteria individuals employ when

selecting an insurance provider.

33
3.4 Research Design

(Exploratory and Descriptive Research Design)

The research will employ a mixed-methods approach involving both exploratory and descriptive

research designs.

• Exploratory Research Design

Utilize qualitative methods, such as interviews and focus groups, to gather initial insights into

the factors influencing consumer decisions in insurance services.

Explore various dimensions of customer attitudes, perceptions, and behaviors towards insurance

products.

• Descriptive Research Design

Develop a structured questionnaire based on the insights gained from the exploratory phase.

Implement quantitative methods, such as surveys, to collect data from a diverse sample of

respondents.

Use statistical tools to analyze the collected data and identify patterns, correlations, and trends.

Examine the relationships between variables like age, occupation, income, risk aversion, and

insurance decision-making.

Data Sources: The study relied on Primary Data, gathered through both Online Platforms and

Questionnaires.

Target Population: The target population consisted of individuals aged 14 to 50 in the New

Delhi area, encompassing all potential customers of AIM India.

Sample Frame: The sampling frame focused on individuals aged 14 to 50, with an income

ranging from 2.5 lacs to 20 lacs, engaged in various occupations such as government sector

employees, businessmen, private job holders, or those who are self-employed.

34
Sample Size: Given the large and unknown population of potential customers in New Delhi, a

sample size of 533 was finalized. This sample included individuals from different occupations

and age groups.

Sampling Techniques: Probability-based sampling techniques were employed to ensure a

representative selection of participants. The idealistic approach of quantitative methods guided

the sampling process.

35
 3.5 Data Collection & Analysis tools

• Data Collection

A well-designed questionnaire was utilized for data collection. The questionnaire was tailored

to the research requirements and included variables related to both independent and dependent

variables, such as Attitude, Perceived ease of use, Perceived usefulness, and decision-making.

• Data Analysis Tools

Microsoft Excel was the primary tool used for the analysis of the collected data. The Pivot table

feature in Microsoft Excel facilitated the identification and understanding of the customer

decision-making process.

36
 CHAPTER : IV (Data Analysis & Interpretation)
1.How many people responded?
• 533 respondents

2.What is Male and Female ratio of respondents?

Gender Respondents

Female 127

Male 406

Grand Total 533

Gender

24%
Female

Male

76%

Interpretation:
In 533 respondents, 127 respondents were female and remaining 406 respondents were male that

is 24% were females and 76% were males. The ratio of the female is to male in this research was

6:19. This shows that mostly decision-making process to take insurance or not are taken by the

male.

37
3.What is the Age of Respondents?

Age No of Respondents

14-20 13

21-25 52

25-30 110

30-35 143

35-40 127

40-45 63

45-50 12

50+ 13

Grand Total 533

Age
160
143
140 127
120 110

100

80
63
60 52

40

20 13 12 13

0
14-20 21-25 25-30 30-35 35-40 40-45 45-50 50+

No of Respondents

Interpretation:
In 533 respondents, maximum respondents were of age 30-35 that is 143 and minimum were the

age of more than 50+ that is 13. This shows that middle age people are more concerned about

38
decision-making process for insurance.

4.What is the occupation of respondent?

Occupation No of Respondents

Government Services 108

Businessman 71

Private Job 155

Self-employed 89

Student 74

Others 36

Grand Total 533

Occupation

Student 74

Self-employed 89

Private Job 155

Others 36

Government Services 108

Businessman 71

0 20 40 60 80 100 120 140 160 180

No of Respondents

Interpretation:
In 533 respondents, maximum respondents are in private jobs that are 155 and minimum

respondents were students that is 71. This shows in terms of insurance decision-making process

private job occupation people are more concerned and students are less concerned about

insurances
39
5.What is the income of respondents?

Income No of Respondents

Nil 71

0 - 2.5 lacs 12

2.5 - 5 lacs 34

5 - 7.5 lacs 53

7.5 - 10 lacs 78

10 - 12.5 lacs 98

12.5 - 15 lacs 56

15 - 17.5 lacs 43

17.5 - 20 lacs 37

More than 20 lacs 33

Confidential 18

Grand Total 533

Income
120
98
100
78
80 71
53 56
60
43
34 37 33
40
18
20 12

No of Respondents

40
Interpretation:
Out of 533 respondents, the income of maximum respondents that is 98 is 10 -12.5 lacs and

minimum respondents that is 12 is 0 – 2.5 lacs. This shows that income of 10 – 12.5 lacs people

are more curious and concerned in decision-making process of insurance services and 0 – 2.5

lacs people are very less concerned.

41
 6.Are you risk averse?

Risk Averse No of Respondents

Maybe 200

No 270

Yes 63

Grand Total 533

Risk Averse

63, 12%
200, 37%

270, 51%

Maybe No Yes

Interpretation:
Out of 533 respondents, 51% respondents that is 270 are not risk averse and 37% respondents

that are 200 maybe risk averse and remaining only 12% that is 63 are risk-averse. This shows

that people are less risk averse nowadays.

42
7.Do you have insurance policy?

Insurance Policy No of Respondents

No 239

Yes 294

Grand Total 533

Insurance Policy

45%

55%

No Yes

Interpretation:
Out of 533 respondents, 55% respondents that is 294 people have insurance policies and 45%

respondents that are 239 do not have insurance policy. This shows people are nowadays more

concerned to take the insurance policy.

43
8.Which is the current state of your insurance?

Current State of Insurance No of Respondents

The insurance has been cancelled 38

The insurance is over 13

The insurance is still running 306

Don't have insurance policy 176

Grand Total 533

Current State of Insurance

No of Respondents

350

306

250

176
150

100
38
13
0
The insurance has been The insurance is over The insurance is still running Don't have insurance policy

cancelled
Interpretation:
Out of 533 respondents, 306 respondent’s insurances are still running, 176 respondents don’t

have the insurance policy, 38 respondent’s insurances have been cancelled and 13 respondent’s

insurances is over. This shows that maximum people insurance is already running and they are

concerned about it.

44
9.Which are the main reasons for which you would buy an insurance?

Reason for buying Insurance No of Respondents

Forced Selling 27

Investment 139

Security 293

Tax 62

Other 12

Grand Total 533

Reason for buying Insurance

OtFhoerrc,e1d2S,e2l%
ling, 27, 5%
Tax, 62, 12%

Investment, 139, 26%

Security, 293, 55%

Forced Selling Investment Security Tax Other

Interpretation:
55% respondents buy insurance for security, 26% respondents buy insurance as investment

purpose, 12% respondents buy insurance to get tax benefits, 5% buy insurance as forced selling

and 2% buy insurance for other purposes. This shows that mostly customer buys insurance as

the reason for security

45
10.What criteria you use for choosing the insurance company?

Criteria for choosing Insurance No of Respondents

Agents 24

Characteristics of Product 168

Recommendation 27

Services 111

Trust 203

Grand Total 533

Criteria for choosing Insurance

24, 4%

203, 38% 168, 32% Agents

Characteristics of Product
Recommendation
27, 5%
Services
111, 21%
Trust

Interpretation:
38% respondents choose insurance on the basis of trust on insurance companies, 32%

respondents choose insurance on the basis of characteristics of product, 21% respondents choose

insurance on the basis of services provided by an insurance company, 5% respondents choose

insurance on the basis of recommendation and 4% respondents choose insurance through

trusting agents. This shows that customers choose insurance on the basis of trust over an

insurance company.
46
11.How do you prefer to buy an insurance?

Preference to buy an Insurance No of Respondent

Direct from agency 141

Insurance Agent 252

Online 140

Grand Total 533

Preference to buy an Insurance

26% 27%

Direct from agency

Insurance Agent

47% Online

Interpretation:
47% respondents prefer to buy an insurance through an insurance agent, 27% respondents prefer

to buy an insurance directly from an agency and 26% respondents prefer to buy an insurance

through the online platform. This shows that people prefer to buy the insurance policy through

an insurance agent.

47
 12.Do you feel more protected having an insurance?

Feel protected having an insurance No of Respondents

No 51

Yes 482

Grand Total 533

Feel protected having an insurance

51, 10% 482, 90% 482, 90%

No Yes

Interpretation:
90% respondents feel protected while having an insurance policy and 10% respondents do not

feel secure while having an insurance. This shows people feel protected while having an

insurance policy.

❖ TESTING OF HYPOTHESIS

❖ Hypothesis 1

❖ Null Hypothesis (H0): There is no significant relationship between age groups and the

likelihood of purchasing insurance.

48
 ❖ Alternative Hypothesis (H1): Different age groups exhibit variations in their propensity

to purchase insurance.

Likelihood of Purchasing Insurance

OV
Yes No
14-20 5 8 13
21-25 29 23 52
25-30 62 48 110
Age 30-35 86 57 143
Group 35-40 65 62 127
40-45 33 30 63
45-50 7 5 12
50+ 7 6 13
294 239 533

Likelihood of Purchasing Insurance

EV
Yes No
14-20 7.170731707 5.829268293 13
21-25 28.68292683 23.31707317 52
25-30 60.67542214 49.32457786 110
Age 30-35 78.87804878 64.12195122 143
Group 35-40 70.05253283 56.94746717 127
40-45 34.75046904 28.24953096 63
45-50 6.619136961 5.380863039 12
50+ 7.170731707 5.829268293 13
294 239 533

Cal CHISQ.TEST 0.775260818 L

Tab CHISQ.TEST 14.07 DOF=7
As we can see calculated value is less than tabulated one so we will accept null hypothesis H0 and

reject the alternate hypothesis H1

Interpretation:

After conducting the analysis, the results suggest that there is no significant relationship between

age groups and the likelihood of purchasing insurance. In other words, the data does not provide

enough evidence to reject the null hypothesis. This implies that individuals from different age

49
 groups are equally likely to purchase insurance, and age alone may not be a decisive factor in

predicting insurance purchase behavior.

Hypothesis 2

Null Hypothesis (H0): Occupation does not impact the criteria individuals use for choosing an

insurance company.

Alternative Hypothesis (H1): Occupation influences the criteria individuals employ when

selecting an insurance provider.

Criteria for choosing insurance company

OV
Agent Characteristic Recommendation Services Trust
Government 5 32 6 29 36 108
Businessman 6 38 4 7 16 71
Private Jobs 3 45 3 22 82 155
Occupation Self
Employed 4 29 4 23 29 89
Student 2 18 4 22 28 74
Others 4 6 6 8 12 36
24 168 27 111 203 533

Criteria for choosing insurance company

EV
Agent Characteristic Recommendation Services Trust
Government 4.86 34.04 5.47 22.49 41.13 108
Businessman 3.20 22.38 3.60 14.79 27.04 71
Private Jobs 6.98 48.86 7.85 32.28 59.03 155
Occupation Self
Employed 4.01 28.05 4.51 18.53 33.90 89
Student 3.33 23.32 3.75 15.41 28.18 74
Others 1.62 11.35 1.82 7.50 13.71 36
24 168 27 111 203 533

LOS 5% DOF=20
Cal CHISQ.TEST 1.25E-06
Tab CHISQ.TEST 31.41
As we can see calculated value is less than tabulated one so we will accept null hypothesis H0 and

reject the alternate hypothesis H1

50
Interpretation:

The analysis indicates that occupation does not significantly impact the criteria individuals use

for choosing an insurance company. The null hypothesis, stating no effect of occupation on the

criteria for selecting an insurance provider, is accepted based on the data. This implies that various

occupations do not show significant variations in the factors they consider when choosing an

insurance company. The alternative hypothesis, suggesting an influence of occupation, is not

supported by the findings.

51
 CHAPTER : V
5.1 Findings
• Gender Distribution
o Approximately three-quarters (76%) of the respondents were male, while females constituted

24%.

o The study exhibited a predominant participation of males in the decision-making process for

insurance, with a ratio of 6:19 (female to male).

• Age Influence
o The age group 30-35 showed the highest representation among respondents (143 individuals),

suggesting that individuals in their thirties are more actively involved in insurance decision-

making.

o In contrast, respondents aged 50 and above exhibited the least interest, with only 13

participants.

• Occupational Impact
o Individuals employed in private jobs demonstrated the highest interest in insurance decision-

making, accounting for 155 respondents.

o Students, on the other hand, exhibited the least engagement, with only 71 participants showing

interest in insurance decisions.

• Income Considerations
o Respondents with an income ranging from 10 to 12.5 lacs displayed heightened curiosity and

concern regarding insurance decisions.

o Those with incomes falling in the 0 to 2.5 lacs bracket showed relatively less interest in

insurance decision-making.

52
• Risk Aversion Trends
o A significant portion (51%) of respondents declared themselves as not risk-averse, while 37%

identified as potentially risk-averse, and only 12% admitted to being risk-averse.

o The findings suggest a general trend of reduced risk aversion among respondents.

• Insurance Policy Ownership

o A majority (55%) of the respondents possessed insurance policies, indicating a considerable

interest in insurance services.

o Among policyholders, 306 respondents had active insurance policies, emphasizing a

prevailing focus on maintaining existing coverage.

• Motivations for Insurance Purchase

o Security emerged as the primary motivation for purchasing insurance, with 55% of

respondents citing it as their main reason.

o Other motivations included investment (26%), tax benefits (12%), and a small percentage

(5%) opting for insurance due to forced selling.

• Influential Factors in Choosing Insurance

o Trust in insurance companies (38%) and product characteristics (32%) were identified as the

top factors influencing the choice of insurance.

o Other considerations included the quality of services provided by insurance companies (21%)

and recommendations (5%).

• Preferred Channels for Insurance Purchase

o A significant portion (47%) of respondents preferred purchasing insurance through an

insurance agent.

o Online platforms also garnered preference, with 26% of respondents opting for this channel.

53
• Perceived Protection with Insurance
o The majority (90%) of respondents expressed a feeling of protection when having an insurance

policy.

o A smaller percentage (10%) did not feel secure despite having insurance coverage.

54
5.2 Recommendation /Suggestions

o Customize marketing approaches based on age demographics

o Tailor insurance products to meet the specific needs of private jobholders

o Introduce income-specific insurance plans for different financial brackets

o Conduct campaigns to educate and address risk-aversion concerns among potential

customers

o Focus on enhancing customer service for existing policyholders to ensure satisfaction

o Actively promote and facilitate online insurance purchases

o Diversify motivational factors for purchasing insurance beyond security

o Implement trust-building measures, emphasizing transparent communication and reliability

o Conduct continuous market research to stay informed about evolving customer preferences

55
 5.3 Limitations

o Limited to respondents in the New Delhi area, reducing geographical diversity

o Potential bias due to the reliance on online platforms for data collection

o The age range of 14 to 50 may not capture insights from older demographics

o Occupation-focused sampling may overlook perspectives from unemployed individuals

o The income categorization might not align with regional economic variations

o Risk aversion perceptions could be subjective and vary across individuals

o Findings may not be universally applicable due to the study's regional focus

o The reliance on self-reported data introduces the possibility of response bias

o Limited exploration of specific insurance products or companies

o The study's cross-sectional nature restricts the examination of changes over time

56
 5.4 Conclusion

In conclusion, our study aimed to understand how people decide to buy insurance services. We

found that more men tend to make these decisions, and middle-aged individuals, especially those

with jobs, are more likely to be concerned about insurance choices. High-income earners also

showed more interest.

Surprisingly, many people are not very afraid of taking risks, and a significant number already

have insurance policies, mainly for security reasons. Trust in insurance companies is crucial in

choosing a policy. Interestingly, despite online options, many still prefer buying insurance through

agents.

These findings offer valuable insights for the insurance industry, suggesting they should consider

the specific needs and preferences of different groups when offering their services in New Delhi.

57
 REFERENCES
BOOKS:

1. Kotler, P. (2006). Marketing Management, twelfth Edition.

2. Bhir, B. S., & Limaye, M. D. Insurance Buying Behavior and Practices. Lakshmi Book

Depot.

JOURNALS:

1. Najjar & Ram (2016). "Consumer Perception Regarding Life Insurance Policies: A

Factor Analytical Approach." Pacific Business Review International, 9(6), 52-61.

2. Sharma & Kumar. (September 2015). "An Empirical Study on Consumer’s Perception

towards Life Insurance in Ahmedabad City." International Conference on Science,

Technology, and Management, 1498-1508.

3. Kotler, P. (1981). "Atmospherics as a Marketing Tool." Journal of Retailing, 48-30001-

Above.

4. Smith, Kuhlemeyer and Allen (2008)"An Experimental Study of Insurance Decisions."

Journal of Risk and Insurance, 46(4), 603-618.

5. Namasivayam, N., Ganesan, S., & Rajendran, S. (August 2006). "Socio-economic

Factors Influencing the Decision in Taking Life Insurance Policies." Insurance

Chronicle, 65-70.

6. Raman & Gayatri. (2016). "Insurance Disputes in India." ICFAI University, 7, 83.

WEBSITES:

1. IJCRT. Retrieved from https://ijcrt.org/ assessed on Friday 08/09/2023 Time 12:30PM

2. ResearchGate. Retrieved from https://www.researchgate.net/ assessed on

Monday11/09/2023 Time 02:30PM

58
 ANNEXURE
QUESTIONNAIRE:

1. Name

2. Gender
a. Female
b. Male

3. Age
a. 14-20
b. 21-25
c. 25-30
d. 30-35
e. 35-40
f. 40-45
g. 45-50
h. 50+

4. Occupation
a. Government Services
b. Businessman
c. Private Job
d. Self-employed
e. Student
f. Other

5. Income
a. Nil
b. 0 - 2.5 lacs
c. 2.5 - 5 lacs
d. 5 - 7.5 lacs
e. 7.5 - 10 lacs
f. 10 - 12.5 lacs
g. 12.5 - 15 lacs
h. 15 - 17.5 lacs
i. 17.5 - 20 lacs
59
 j. More than 20 lacs
k. Confidential

6. Are you risk averse?

a. Yes
b. No
c. Maybe

7. Do you have an insurance policy?

a. Yes
b. No

8. Which is the current state of your insurance?

a. The insurance is still running
b. The insurance is over
c. The insurance has been cancelled
d. Don't have insurance policy
e. Other

9. Which are the main reasons for which you would buy an insurance?
a. Tax
b. Investment
c. Security
d. Discipline
e. Forced Selling
f. Other

10. What criteria you use for choosing the insurance company?
a. Services
b. Trust
c. Publicity
d. Recommendation
e. Agents
f. Characteristics of Product
g. Other

11. How do you prefer to buy an insurance?

a. Insurance Agent
60
 b. Direct from agency
c. Online
d. Other
12. Do you feel more protected having an insurance?
a. Yes
b. No

13. If you have not an insurance, would you buy one or you will not buy and why?

61