Financial Risk Management
Factors Influencing the Selection of Life Insurance Service Provider: A Comparative Study of Public and Private Sector Life Insurance Companies

Article Details
Pub. Date : Dec, 2021
Product Name : The IUP Journal of Financial Risk Management
Product Type : Article
Product Code : IJFRM031221
Author Name : Santhosh C H
Availability : YES
Subject/Domain : Finance Management
Download Format : PDF Format
No. of Pages : 28

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Abstract

India's economic development depends upon the growth and stability of its financial system. The insurance sector is one of the major players in the financial system of the country. It has progressively developed in different phases since nationalization of the industry till the recent reforms of allowing private and foreign investment. There have been numerous risks of uncertainties since then, which are both structural and cyclical in nature and led to a consequential rise in stress among the people. Life insurance policy not only provides risk coverage but also delivers useful benefits and insurance companies provide a very large variety of products and policies that are well customized based on the needs of different customers. Due to the rise in competition, a majority of insurance service providers today provide better service quality to the policyholders, leading to non-price competition in the sector. The current study analyzes the level of awareness and satisfaction among the insured customers about life insurance policies and the policies of public and private insurance companies. Further, it analyzes the attributes responsible and the preference of customer for either private or public insurance companies. The statistical techniques used for the analysis of primary data in the study include student t-test and correlation. The major reasons for taking policies and response of customers were also analyzed.


Introduction

The development of the Indian economy depends on the growth and stability of the financial system. The insurance sector is one of the major players in the financial system of the country. In today's world, there are numerous risks of uncertainties and the consequential rise in stress among the people. The people are in dire need of a measure or an instrument to play down the risk by protecting themselves from possible uncertainties. Life insurance provides an intent goal, through which the community can seek protection against the possible uncertainties.

Life insurance not only provides risk coverage but also includes certain benefits for the insured people or the customer. The insurance company provides a very large variety of products and policies that are well customized based on the needs of the different segments


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