final body of i&l...pdf

8/9/2019 FINAL Body of I&L...pdf

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7 | P a g e F a c t o r a f f e c t i n g p e o p l e t o p u r c h a s e l i f e i n s u r a n c e p o l i c y

1.0. Introduction

1.1 Origin of the Report

Among the insurance policies life insurance one of the most popular policy in the insurance

sector of Bangladesh. So the study has been made on life insurance policy to identify the

factors affecting people to purchase life insurance policy.

1.2 Research Question

The main research question of this report is:

What are the factors affecting people to buy life insurance policy in Bangladesh?

1.3 Objectives

So in terms of research questions the objectives of this research are

To observe the practical scenario of life insurance market in Bangladesh

To find out the those factors that affect the people of Bangladesh to purchase the life

insurance policy

1.4 Scopes of the Report

In this report some factors are included and some are excluded. Such as:

Included are:Implementation of bank management

Theoretical explanation of life insurance policy

Place of collecting data

Figure out the factors, analyze it and finally conclusion

Excluded are:

Political intervention

Environment and nature

1.3. Literature Review

Mantise and Farmer (1968) showed that marriages, births, personal income, population

size, relative price index, and employment could affect the insurance purchase, many studies

have been conducted to estimate the demand for insurance or to test risk-aversion.

Anderson and Nevin (1975) in the study looked at the life insurance purchasing behaviour

of young newly married couples. The study suggested that the wife and the insurance agent

are playing an influential role in the type of insurance purchased by young married

households.

Campbell (1980) found that not only does a portion of currently accumulated household

wealth act as a substitute for insurance; there is also a portion of future human capital thathouseholds should self-insure.




Goldsmith (1983) in the paper developed and investigated the relation between a wife's

human capital accumulation and household purchases of life insurance on the husband.

Households with a more educated wife, ceteris paribus, were found to have a lower

likelihood of purchasing term insurance on the husband. He suggested that household

characteristics and the decision-making environment are important determinants of ahousehold’s insurance purchasing behavior.

Truett and Truett (1990) showed that age, education, and level of income are factors that

affect the demand for life insurance, and that income elasticity of demand for life insurance is

much higher in Mexico than in the United States.

Gandolfi and Miners (1996) showed that there are meaningful differences between

husbands and wives in their demand for life insurance.

Chen, et al. (2001) revealed that insurance demand of baby boomer generation is quite

different from that of previous generations using cohort analysis.

1.4. Research Methodology

Research Design: This report is mainly both normative and quantitative research. The main

focus of this report is to figure out the factors then analyze the data and finally recommend on

the basis of analyzing data.

Sources & Collection of Data: For this report we have used two types of data- primary and

secondary.

Primary data: Primary data have been collected by talking with several insurance companies

as well as face to face conversation with the policy holders .We have collected data through

both convenience sampling and judgment sampling .Judgment sampling was selected because

not all people know about life insurance policy.

Secondary data: Secondary data have been collected from various Web-sites, Books,

Articles, Manuals of insurance company etc.

Data Analysis:

First we study the theories

Then we gather the data on the implementation

At last we try to figure out the differences between theory and implementation and

then some recommendations

Data have been analyzed through SPSS.

1.5 Limitations

There are limitations in making this report. Those limitations are given below:

Access to information

Access to resources

Time management

Access to experts for editing, proof reading, and guidance

Support from organizations and participants Lack of fund




2.0 Insurance in general terms

2.1 Definition:

The insurance policy is generally an integrated contract, meaning that it includes all formsassociated with the agreement between the insured and insurer.

In some cases, however, supplementary writings such as letters sent after the final agreement

can make the insurance policy a non-integrated contract.

2.2 Parts of an insurance contract:

Declarations - identifies who is an insured, the insured's address, the insuring company,

what risks or property are covered, the policy limits (amount of insurance), any applicable

deductibles, the policy period and premium amount. These are usually provided on a form

that is filled out by the insurer based on the insured's application and attached on top of or

inserted within the first few pages of the standard policy form.

Insuring agreement - describes the covered perils, or risks assumed, or nature of coverage,

or makes some reference to the contractual agreement between insurer and insured. It

summarizes the major promises of the insurance company, as well as stating what is

covered. Conditions - provisions, rules of conduct, duties and obligations required for coverage. If

policy conditions are not met, the insurer can deny the claim.

Endorsements - additional forms attached to the policy form that modify it in some way,

either unconditionally or upon the existence of some condition. Endorsements can make

policies difficult to read for non-lawyers; they may modify or delete clauses located

several pages earlier in the standard insuring agreement, or even modify each other.

Policy riders - A policy rider is used to convey the terms of a policy amendment and the

amendment thereby becomes part of the policy. Riders are dated and numbered so that

both insurer and policyholder can determine provisions and the benefit level. Common

riders to group medical plans involve name changes, change to eligible classes of

employees, change in level of benefits, or the addition of a managed care arrangement

such as a Health Maintenance Organization or Preferred Provider Organization (PPO).

http://en.wikipedia.org/wiki/Preferred_Provider_Organization

http://en.wikipedia.org/wiki/Preferred_Provider_Organization




2.3 Risk in the perspective of customers:

Financial risk: sometimes consumers are concerned about losing money.

Performance risk: you might be worried that the policy does not work.

Time risk: You might be concerned that one policy may require more time to put

together or to get it to work right than another policy.

Psychological risk: Sometimes people are concerned that an insurance policy may

not fit their self-image.

3.0 Emergence of the Insurance businesses in Bangladesh

Insurance is not a new idea or proposition to the people of Bangladesh. About half a

century back, during the British regime in the then India, some insurance companies started

insurance business, particularly life, in this part of the world. Since 1947 until 1971 insurance

business gained momentum in this part of what was then known as East Pakistan. There were

about 49companies transacting both life and general insurance business. These companies

were operating under a free competitive economy. After the emergence of the People’s

Republic of Bangladesh in 1971, the government, in order to make available the fruit of

liberation to the general mass, nationalized the insurance industry along with the banks in1972 by Presidential Order No. 95. By virtue of this order, save and accept postal life

insurance and foreign life insurance companies, all companies and organization

transacting all types of insurance business in Bangladesh came under this nationalization

order. At the same time, five insurance corporations were initially established by the

Government-

1) Jatiya Bima Corporation (National Insurance Corporation),

2) Teesta Bima Corporation (Teesta Insurance Corporation),

3) Karnaphuli Bima Corporation (Karnaphuli Insurance Corporation),

4) Rupsa Jiban Bima Corporation (Rupsa Life Insurance Corporation),

5) Surma Jiban Bima Corporation (Surma Life Insurance Corporation)

Insurance is not a new business in Bangladesh. Almost a century back, during British rule in

India, some insurance companies started transacting business, both life and general, in




Bengal. Insurance business gained momentum in East Pakistan during 1947-1971, when 49

insurance companies transacted both life and general insurance schemes. These companies

were of various origins British, Australian, Indian, West Pakistani and local. Ten insurance

companies had their head offices in East Pakistan, 27 in West Pakistan, and the rest

elsewhere in the world. These were mostly limited liability companies. Some of these

companies were specialized in dealing in a particular class of business, while others were

composite companies that dealt in more than one class of business.

4.0 The government guidelines for formation of an insurance company

(1) The intending sponsors must first submit an application in prescribed form to the Chief

Controller of Insurance for prior permission

(2) After necessary scrutiny the Chief Controller shall forward the application with his

recommendation to the Ministry of Commerce

(3) After further scrutiny, the Ministry of Commerce shall submit its views to the Cabinet

Committee constituted for this purpose

(4) The decision of the Committee, if affirmative, should be sent back to the Ministry of

Commerce which in turn should send it back to the Chief Controller of Insurance forcommunicating the same to the sponsors

(5) The sponsors would then be required to apply in a prescribed form to the Registrar of

Joint Stock Companies to get registration as a public liability company under the Companies

Act. Memorandum and Articles of Association duly approved by the Controller of Insurance

would have to be submitted with the application

(6) Once the registration process was completed the sponsors would have to obtain

permission of the Securities and Exchange Commission to issue share capital

(7) Reinsurance arrangements would have to be made at this stage

(8) After all the above requirements were fulfilled the license to commence business under

the Insurance Act 1938 is to be obtained from the Chief Controller of Insurance. Application

can only be made subject to government announcements in this regard.




5.0 Life Insurance

Nowadays, life is full of risks and uncertainties. People might not know when will fall sick or

in need of a major surgery where large amount of money is needed. Life insurance is known

as 'Life Assurance'. Life insurance provides risk coverage to the life of a person .Insurance

provide protection against loss of income and compensate to the policy holder when the

person death.

It's difficult to apply a rule-of-thumb because the amount of life insurance you need depends

on factors such as your other sources of income, how many dependents you have, your debts,

and your lifestyle. The general guideline is between five and ten times your annual salary.

The debate over term versus whole life insurance goes on. Some experts recommend that if

you're under 40 years old and don't have a family disposition for a life threatening illness, go

for term insurance, which offers a death benefit but no cash value.

Whole life offers both a death benefit and cash value, but is much more expensive. Half of all

cash value policies are surrendered within the first seven years, making the coverage very

expensive because huge commissions (thousands of dollars the first year) and fees limit the

cash value in the early years. Since these fees are built into the complex investment formulas,

most people don't realize just how much of their money is going into their insurance agent's

pockets.

5.1 Types of Life Insurance:

Term Life: Term insurance is “pure” insurance that offers a predetermined death benefit if

you die within the term covered, but doesn't build up a cash value during your lifetime. (By

comparison, whole life insurance offers both a death benefit and a cash value, but is much

more expensive.)

Whole Life: In this more traditional life insurance policy, the premiums stay the same over

the life of the policy, which stays in effect until your death, even after you've paid all the

premiums. A cash reserve is built up, but you have no control over how it's invested.

Variable Life: Variable life polices build up a cash reserve that you can invest in any of the

choices offered by the insurance company. The value of your cash reserve depends on how

well those investments are doing.




Universal Life: You can vary the amount of your premium with Universal life insurance

policies by using part of your accumulated earnings to cover part of the premium cost. You

can also vary the amount of the death benefit. For this flexibility, you'll pay higher

administrative fees.

6.0 Problem of Insurance Business in Bangladesh

6.1 Social Problems: Social problems of insurance business is given bellow

Less Public awareness

Centralization

Poor economic conditions

Poor financial position of the insurance companies

Higher cost of business

Problems of economic bases and effective principle

6.2Political problems: Political problems of insurance business is given bellow

Political instability

Lack of supervision from the government

Problem of planning and administration

6.3Legal Problem: Legal problem of insurance business is given bellow Too much complexity

6.4 Other problems: Other problems of insurance business is given bellow

Lack of qualified officials

Traditional method

Lack of training for the employees

Lack of exposure

Absence of business ethics

Lack of motivation program towards public

Lack of information technology

Insufficient service

Lack of marketing policy




7.0 Factors affecting people to buy life insurance policy in Bangladesh (considering

different segments of insurance)

Personal factors such as age, life-cycle stage, occupation, economic circumstance,

personality type and core values all influence consumer behavior.

Product choice can be greatly influenced by a consumer’s economic circumstances

If spendable income is low, then they may need your insurance product to be tailored

to fit their available income.

People of Bangladesh have a very small saving potentially and thus have less or no

disposable income. Almost the whole of the income is exhausted in the process of

maintaining the day-to-day life. This factor discourages many to buy life insurance

policy

Low per capita income is considered to be the main reason for poor life insurance

penetration in Bangladesh. The country has a very low per capita income and over

50% of our total population lives below the poverty line. Inability to save or

negligible savings by a vast majority of population kept them away from the horizon

of life insurance.

In recent years, the number of women who are head of the household has increased.

These women purchase life insurance to ensure the funds for childcare and household

maintenance are there in the event of their death

Family is yet another aspect of social factors influencing consumer behavior

The social circle’s attitudes as well as self-concept play a role in buying insurance

policies

People are constantly exposed to new behaviors and lifestyle choices.

Social class is another cultural factor affecting consumer behavior and their insurance

purchases. Differing social classes show distinct product and brand differences in

many areas

Personal Factors:

There are a number of personal factors that will change both your policy needs and costs

when you purchase life insurance. Your medical history will be very important, and there

are certain health issues that are more influential than others. These are the primary health

concerns to look out for:

Cardiovascular disease Alcohol or drug use

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High blood pressure

Bad cholesterol

Obesity

Flying as a private pilot

Illiteracy is another factor. About 70% of the population is floating in the sea of

ignorance. Illiteracy leads one to think that the insurance is deception; it is no value in

life. They cannot think rationality because they do not know what is insurance and

what its importance as security for future.

Religious superstitions or religious attitude of the people also stands against efficient

insurance. The religious people believe that the future is uncertain, it is in the hand of

Allah and they do not think it necessary to buy life insurance policy for them.

Most of the policyholders discontinue their policies owing to price spiral and shortage

of fund

An important reason for the dismal performance of insurance business in Bangladesh

is poor client services provided by the insurance companies. The public image of

service from life insurance institutions is very poor

8.0 Output of the Survey on Customer Preferences Regarding Insurance Policy

8.1 Identification of Null Hypothesis:

Here, we are mainly dealing with the variables to identify the factors that affect people to

purchase life insurance policy. So we have to prove that the variables that we are dealing

have correlation among them. To prove that we have considered a null hypothesis (H0) that is

“the variables are perfectly correlated with themselves (r=1) but has no correlation with

other variables.”

8.2 KMO Test:

Table No. 8.1: KMO Test

KMO Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0 .521

Source: Primary data collection, 2014

From the above table, we can see that the KMO test result is 0.521. KMO test measures the

sampling adequacy as well as the appropriateness of factor analysis. If the KMO test result is

less than 0.5 then the sample is considered to be inadequate and the model is considered to be

inappropriate. As the KMO test result of this sampling is 0.521, we can consider the sample

as adequate and this model is appropriate.




8.3 Bartlett’s Test:

Table no. 8.2: Bartlett’s Test

Bartlett's Test

Bartlett's Test of SphericityApprox. Chi-Square 340.587Df 153

Sig. .000

Source: Primary data collection, 2014

In Bartlett’s Test of Sphericity, Chi-square value denotes whether the sample represents the

population or not. Here, the Chi-square value is 340.587 and degree of freedom is 153. As the

Chi-square value is comparatively very high, we can denote that the sample represents the

population.

8.4 Correlation Matrix:

(See Appendix 1)

The correlation matrix identifies the direction and strength of the variables with other

variables. It is also an identical matrix that means the diagonal of the correlation matrix must

be comprised of 1. From the correlation matrix we can see that variables have high

correlation among them. So, the null hypothesis “the variables are perfectly correlated with

itself (r=1) but has no correlation with other variables” is rejected as there exist high

correlation among the variables.

8.5 Communalities:

Table no. 8.3: Communalities

Raw Rescaled

Extraction Extraction

Age of the respondent .612 .711

Gender of the respondent .019 .083

Occupation of the respondent .655 .727

Insurance Policy Holder .069 .275View of the respondent 1.165 .905

Choosing an Insurance Company 4.201 .999

Education level of the respondent .188 .347

Family Type .033 .102

Social Circle's Attitude to Insurance .589 .650

Cultural factor to Insurance .254 .360

Social Class's attitude .637 .665

Religious attitude .091 .112

Family Attitude to Insurance .276 .389Health Problem of the respondent .064 .172




Intend to buy an insurance policy .072 .169

Discontinue of a purchased policy .035 .194

Reason to discontinue of a purchased policy 3.703 .987

Buying problem of a consumer 1.729 .978

Source: Primary Data Collection 2014

From the communalities table, we have got initial and extraction value. Extraction value of a

particular variable represents the percentage of sharing variances of the particular variable

with other variables. Here, the first variable whose extraction value is 0.711 means that this

variable shares 71.1% of its variance with other variables. From the table we can see that

eight variables share more than 60% with other variables, which represents the correlation

among the variables. So the null hypothesis is rejected as the communalities table shows

correlation among the variables.

8.6 Total Variance Explained:

Table no. 8.4: Total Variance Explained

Component Initial Eigen values

1 4.677 24.376 24.376

2 3.918 20.420 44.795

3 1.878 9.789 54.584

4 1.555 8.105 62.689

5 1.231 6.414 69.103

6 1.134 5.912 75.014

7 .943 4.916 79.931

8 .869 4.529 84.460

9 .560 2.920 87.380

10 .422 2.199 89.578

11 .398 2.075 91.653

12 .354 1.843 93.496

13 .317 1.651 95.147

14 .268 1.396 96.543

15 .255 1.329 97.873

16 .176 .919 98.792

17 .150 .783 99.575

18 .082 .425 100.000


From the total variance explained table we can see that six variables have got Eigen values

more than 1. It means these six variables can explain more than one variable. So we can

consider them as factor. Now these six factors can represent 75.014% of variance from the

total variance. We know that if the factors represent more than 60% of the total variance, then




factor analysis is considered to be as appropriate. So this model is effective and appropriate

as the factors represent 75.014% of the total variance.

8.7 Component Matrix:

Table no. 8.5: Component MatrixComponent Matrix

Particulars Rescaled

1 2 3 4 5 6

Age of the respondent .170 .271 .129 .564 .272 .448

Gender of the respondent .150 -.130 -.022 -.207 .006 .025

Occupation of the respondent -.083 .155 .183 .668 .424 .190

Insurance Policy Holder -.214 -.015 .137 -.152 -.271 -.336

View of the respondent .214 .069 .068 -.726 .215 .526

Choosing an Insurance Company .817 .564 .048 -.001 -.043 -.096Education level of the respondent -.276 .420 .304 .019 -.011 -.044

Family Type .060 -.086 -.140 .173 .202 .020

Social Circle's Attitude to Insurance .051 -.158 -.034 .069 -.754 .221

Cultural factor to Insurance .260 .055 -.215 .219 -.163 .411

Social Class's attitude .167 -.369 .070 -.176 .418 -.539

Religious attitude .054 -.211 .047 .210 .134 .023

Family Attitude to Insurance -.090 .220 .134 -.287 .465 .128

Health Problem of the respondent -.218 .230 -.241 .038 -.078 -.074

Intend to buy an insurance policy .214 -.122 -.139 .059 .067 -.285Discontinue of a purchased policy -.367 .085 -.053 .036 -.135 -.174

Reason to discontinue of a

purchased policy-.642 .753 -.049 -.051 -.012 -.049

Buying problem of a consumer -.131 -.046 .970 -.021 -.129 -.018


From the components matrix table we see that there have 18 variables and 6 factors.

Component matrix represents how many times the specific factor is explained by the number

of variables. From the table we can see that factor 1, 2, 3 and 4 are explained by 10 variables

among 18 variables. On the other hand, factor 5 and 6 are explained by 9 variables.




8.8 Rotated Component Matrix:

Table no. 8.6: Rotated Component Matrix

Rotated Component Matrix

Particulars Rescaled

1 2 3 4 5 6

Age of the respondent .774 .017 .250 .090 .043 .199

Gender of the respondent -.157 -.205 -.022 .112 -.052 .030

Occupation of the respondent .834 .122 -.049 -.060 .101 -.027

Insurance Policy Holder -.364 .165 -.112 -.208 .228 -.085

View of the respondent -.235 -.255 .145 .869 -.001 .098

Choosing an Insurance Company .042 -.078 .043 .053 -.023 .993

Education level of the respondent .070 .439 -.018 .088 .371 .066

Family Type .220 -.080 -.085 -.032 -.194 -.032

Social Circle's Attitude to Insurance -.298 -.129 .651 -.335 .084 -.044

Cultural factor to Insurance .202 -.130 .474 -.004 -.228 .157

Social Class's attitude -.116 -.330 -.732 -.062 -.046 -.021

Religious attitude .223 -.194 -.067 -.103 -.010 -.098

Family Attitude to Insurance .113 .121 -.245 .544 .073 .014

Health Problem of the respondent -.051 .367 .047 -.062 -.166 -.021

Intend to buy an insurance policy -.039 -.148 -.234 -.203 -.182 .131

Discontinue of a purchased policy -.114 .341 -.031 -.161 .041 -.191

Reason to discontinue of a purchased

policy -.007 .968 .031 .189 .112 -.030

Buying problem of a consumer .024 -.109 -.045 .006 .979 -.065

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 14 iterations.

Source: Primary Data Collection

9.0 Findings

In the research we have seen that we have taken 72 male respondents and 38 female

respondents’ opinion. And we have taken maximum 40 respondents (both male and

female) opinion whose age from 35 to 44.

In the research we have seen that 50% respondents intend to buy an insurance policy.

So we can say near about half of the population still are not willing to purchase an

insurance policy.

The factor amount of return on investment (21.8%) much affects in case of buying an

insurance policy.




From the consumer point of view cost and availability of reinsurance and economic

condition (31.8%+22.7% =54.5%) affects while determining to purchase an insurance

policy.

Maximum respondents think that comparison among alternatives & problems

regarding the settlement of claims – these two problems are faced personally while

buying an insurance policy. So we can say maximum people do not know vastly about

the insurance company or which one is better than others.

We have seen 9 respondents discontinued their policy due to mostly poor client

service.

10.0 Prospects of Life Insurance

In a developing country like Bangladesh Insurance business has a lot of potential to start with

because of the increased number of economic activity in the country as well as increase of

associated risks those influence the people to be secured by obtaining various types insurance

policy. Market opportunities or prospects of insurance business in Bangladesh as found from

the analysis are discussed in this section.

Population Growth: Bangladesh is the seventh most populous nation globally with a

total population of 161.1 million in 2012. Its large population will continue to be a

key driver of growth in insurance business over the forecast period. So there is a big

opportunity lies ahead insurance business. Although most of people of the country

live under extreme poverty level and want to avoid insurance policy number of

potential policy holders in Bangladesh is growing with growth of the population.

Increase of GDP: The Gross Domestic Production (GDP) of Bangladesh is

increasing gradually which results in increase of per capita income. Major reason of

unpopularity of insurance in Bangladesh is the incapability of people to pay the

premium. But with the growth in the income more and more people are now willing to

take an insurance policy for safeguarding themselves from any danger.

Increased Awareness: Today People are now much more conscious about their

safety. So they are encouraged to take an insurance policy for making their life free

from any unexpected occurrence. Increase in literacy rate is helping predominantly to

create awareness among the people regarding taking insurance policy. Besides this




insurance companies are also trying to eradicate the negative attitude of people

towards the insurance company by organizing various programs such as seminars,

programs including social responsibilities etc.

Development of New Business: In this era of globalization to cope up with the global

demand so many new businesses starting every day. And there is an increasing

tendency of the entrepreneurs to be insured under an insurance company to protect its

company from any kind of accident. Therefore growing economic developments are

creating better scope for the insurance companies to flourish their business.

11.0 Recommendations

First of all, there is no alternative of quality service. Insurance being a service

rendering entity must provide quick services. Policyholders are highly dissatisfied

with service of JBC and SBC. Due to poor quality services, public corporations

are losing market. In order to ensure their continuity, such corporation must pay

adequate attention on their quality of service. Private companies also need put

their all-out efforts to improve quality of service so as to strengthen their position.

Secondly, the government should eliminate the difficulty in licensing procedureand should not delay in the approval of new companies if all the requirements are

fulfilled. It will help not only to increase volume of business but also solve the

problems of unemployment.

Thirdly developed countries have stronger rule of law, so insurance companies

have to pay on claims. In developing countries with their weaker law enforcement,

an insurance company can refuse to pay and bribe the judge if the customer goes

to court. Or the owners of the company can close it and run off with the money.

We can say that Insurance must be developing our country and our economy.

In order to create the growth of insurance business in our country,

insurance companies should expand their target market by providing responsive

services and establish efficient departments to perform such task.

One of the basic requirements for the insurance industry to have

sustained growth is to enhance training facilities. Bangladesh

Insurance Academy is providing training facilities and professional

education to those engaged in i nsu ran ce bus ine ss in the coun tr y .




The collected premium should be invested in large and beneficial

sectors so that insurance companies can return their clients expected return in

timely.

Finally, the policy holders are very much worried about the settlement of claims.

Ordinary people also consider it main constraint. Therefore, instance companies

should settle the claims as quickly as possible to create a healthy public image.

For this purpose the claim settlement procedure can be simplified and the insurers

can provide proper written guidelines of claim settlement to the policy holders.

12.0 Conclusion

In present insurance is too much important to the business and individual sector. Most of the

companies provide more or less same services. For this reason the competition is increasing

day by day between the insurance companies. On the other hand some new

insurance companies are going to start businesses in the competent market. BGIC need to

develop their some productive sectors. In present, a company cannot establish properly

without developing information technology. People search their desires

requirement through Internet so, insurance companies need to develop Web address to

i n cr e a s e bo t h f or e ig n an d l o ca l in ve s t or . As is evident from the study, among the

social factors Religious attitude to insurance has got the lowest mean and it is 1.10. The

insurance companies thus had better try to maintain the well-timed and satisfactory service

along with maintaining their reputation and goodwill. The companies should pay more

devotion in timely and disturbance free settlement of the claims. Further customer affiliation

management should be of paramount importance for such companies. As family attitude to

insurance influences most, if the insurance company influences the target market it can be

able automatically grab the whole market within a short period of time. Social class’s attitude

to insurance has been evaluated highest mean 2.32 among customers while selecting and

purchasing insurance product which indicates the healthy competition among the insurance

industry. The progress of insurance business depends on the progress of economic condition.

Insurance business also faces many problems. So if we develop economic condition as well

overcome the problems, it will help a lot to flourish this business in our country.

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