Published Online:April 2025
Product Name:The IUP Journal of Applied Finance
Product Type:Article
Product Code:IJAF050425
DOI:10.71329/IUPJAF/2025.31.2.75-93
Author Name:Karabi Goswami
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:75-93
Trust is a critical component in the insurance industry. Existing literature suggests that high levels of customer trust can lead to increased demand for life insurance products. Conversely, frequent complaints and unresolved claims can erode trust, leading to decreased customer loyalty and potential loss of market. Multiple linear regression technique has been used in this study to examine the relationship between claims paid and customer complaints (independent variables) on new business (dependent variable) of life insurance companies. It is found that both claims paid and complaints addressed are predictive variables for life insurance business growth. The results offer new perspectives for insurance companies and policymakers to adapt strategies and promote a more informed insurance environment in India.
Life insurance is an ethereal financial service, with very longtime horizons between premium payments and claim benefits. Hence, this industry is highly susceptible to policy lapses, dropouts and market rejections due to information asymmetry. In countries like India, the sustainability of the industry may be significantly impacted by sizeable transfers from existing policyholders to new ones.