Perspective of individuals towards online insurance

PERCEPTION OF INDIVIDUALS TOWARDS ONLINE INSURANCE

A project submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By

Student Name: Yash Pradeep Rane

Class: [Link] Roll No: 156

Under the guidance of

M.L. DAHANUKAR COLLEGE OF COMMERCE

DIXIT ROAD, VILE PARLE EAST,

MUMBAI - 400 057.

MARCH 2019-2020

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 Perspective of individuals towards online insurance

PERCEPTION OF INDIVIDUALS TOWARDS ONLINE INSURANCE

A project submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By

Student Name: : Yash Pradeep Rane

Class: [Link] Roll No: 156

Under the guidance of

M.L. DAHANUKAR COLLEGE OF COMMERCE

DIXIT ROAD, VILE PARLE EAST,

MUMBAI - 400 057.

MARCH 2019-2020

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 Perspective of individuals towards online insurance

DECLARATION BY LEARNER

I, the undersigned Mr. Yash .P. Rane hereby, declare that the work embodied in this project work titled
“PERCEPTION OF INDIVIDUALS TOWARDS ONLINE INSURANCE”, forms my own contribution
to the research work carried out under the guidance of Mrs. Siddhi Madam is a result of my own research
work and has not been previously submitted to any other University for any other Degree/Diploma to this or
any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.

I, hereby further declare that all information of this document has been obtained and presented in accordance
with academic rules and ethical conduct.

Yash Pradeep Rane

Name and Signature of learner

M.L. Dahanukar College of Commerce,

Dixit Road, Vile Parle (E).

Mumbai – 400 057.

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CERTIFICATE

This is to certify that Mr. Yash Pradeep Rane has worked and duly completed his Project Work for the
degree of Bachelor in Commerce (Accounting & Finance) under the Faculty of Commerce in the subject of
Accounting & Finance, and his project is entitled, “PERCEPTION OF INDIVIDUALS TOWARDS
ONLINE INSURANCE” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part of it
has been submitted previously for any Degree or Diploma of any University.

It is his/her own work and facts reported by his/her personal findings and investigations.

___________________ _______________________ Mrs. Anita Rai

Principal - Dr. [Link]

Course Coordinator M. L. Dahanukar College of Commerce

COLLEGE SEAL

____________________ ______________________
External Examiner Project Guide

Date of submission:

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ACKNOWLDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so enormous

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me a chance to do this project

I would like to thank my Principal Dr. D.M. Doke for providing the necessary facilities required for
completion of this project

I take this opportunity to thank our Coordinator Mrs. Anita Rai, for her moral support and guidance.

I would also like to express sincere gratitude towards my project guide

whose guidance and care my project successful.

I would like to thank my College Library, for having provided various reference books and magazine
related to my project.

Lastly, I would like to thank each and every person who directly and indirectly helped me in the completion
of the project especially my Parents and Peers who supported me throughout my project.

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TABLE OF CONTENTS

CHAPTERS TITLE PAGE NUMBER

CHAPTER 1 INTRODUCTION
1.1 Introduction To Title
1.2 Insurance
1.3 World Insurance Industry
1.4 Indian Insurance Industry
1.5 Sectors In Indian Insurance
1.6 Market Size
1.7 Investments
1.8 Government Initiatives
1.9 Road Ahead
1.10 Online Insurance
1.11 Types Of Insurance
1.12 Advantages Of Online Insurance
1.13 Disadvantages Of Online Insurance
1.14 Strategies Adopted By Companies
To Capture Online Insurance
Markets
CHAPTER 2 RESEARCH METHODOLOGY
2.1 Introduction to Research
Methodology
2.2 Objectives
2.3 Hypothesis
2.4 Research And Methodology
2.5 Importance of Study
2.6 Limitation of study
CHAPTER 3 REVIEW OF LITERATURE
CHAPTER 4 DATA INTERPRETATION AND
ANALYSIS
FINDINGS AND CONCLUSION
CHAPTER 5
CHAPTER 6 REFERENCES,BIBLIOGRAPHY
AND ANNEXURE

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LIST OF TABLES

[Link] PARTICULARS
1 Name Of The Respondent
2 Age Group
3 Gender
4 Qualification
5 Annual Income
6 Why Would You Opt For Online Insurance?
7 What Reasons Are You Afraid while buying insurance?
8 Is it difficult to buy insurance policies online?
9 What are the disadvantages of buying insurance policies online?
10 Whose assistance do you take while buying insurance policies online?
11 Do you think buying insurance online is better as you don’t have to pay commission to
agents?
12 What changes would you like to make to the experience of buying insurance policies
online?
13 Is buying insurance policies online better as you don’t have to buy policies as per the
prefarances of agents?
14 Do you think buying online insurance is time saving as well as cheaper?
15 What things do you look for while buying insurance policies online?
16 Do you think online insurance is the future for insurance industry in India?

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LIST OF CHARTS

particulars Name of charts

1 Age group

2 Gender

3 Qualification

4 Annual income

5 Why would you opt for online insurance

policies
6 What reasons are you worried about while
buying insurance online
7 Is it difficult to buy insurance policies online

8 What are the disadvantages of buying insurance

policies online
9 Whose assistance do you take while buying
insurance policies online
10 Do you think buying insurance online is better
as you don't have to pay commission to agents
11 What changes would you like to make to the
experience of buying insurance policies online
12 Is buying insurance policies online better as
you don't have to buy policies as per the
prefarances of agents
13 Do you think buying online insurance is time
saving as well as cheaper

14 What things do you look for while buying

insurance policies online
15 Do you think online insurance is the future for
insurance industry in India

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 Perspective of individuals towards online insurance

LIST OF TABLES

particulars Name of tables

1 Age group

2 Gender
3 Qualification
4 Annual income
5 Why would you opt for online insurance policies
6 What reasons are you worried about while buying
insurance online
7 Is it difficult to buy insurance policies online
8 What are the disadvantages of buying insurance
policies online
9 Whose assistance do you take while buying
insurance policies online
10 Do you think buying insurance online is better as
you don't have to pay commission to agents
11 Do you think buy online insurance is time saving as
well as cheaper
12 Is buying insurance policies online better as you
don't have to buy policies as per the prefarances of
agents
13 Do you think buying online insurance is time
saving as well as cheaper
14 What things do you look for while buying insurance
policies online
15 Do you think online insurance is the future for
insurance industry in India

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CHAPTER 1. INTRODUCTION

1.1. INTRODUCTION TO TITLE

The insurance industry of India consists of 52 insurance companies of which 24 are in life insurance
business and 28 are non-life insurers. 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 reinsurer, namely, General Insurance Corporation of
India. Other stakeholders in Indian Insurance market include agents (individual and corporate), brokers,
surveyors and third party administrators servicing health insurance claims.

1.2 INSURANCE

An entity which provides insurance is known as an insurer, insurance company, insurance carrier
or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder. The
insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the
form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the
event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms,
and usually involves something in which the insured has an insurable interest established by ownership,
possession, or pre-existing relationship.
The insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insurer will compensate the insured. The amount of money charged by
the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium. If
the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a
claim to the insurer for processing by a claims adjuster. The insurer may hedge its own risk by taking
out reinsurance, whereby another insurance company agrees to carry some of the risk, especially if the
primary insurer deems the risk too large for it to carry.

Insurance is a contract, represented by a policy, in which an individual or entity receives financial

protection or reimbursement against losses from an insurance company. The company pools clients'
risks to make payments more affordable for the insured.

Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result
from damage to the insured or her property, or from liability for damage or injury caused to a third party.

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1.3 WORLD INSURANCE INDUSTRY

Outside the United States, the insurance industry is divided into life and nonlife (or general insurance),
rather than life/annuity and property/casualty. Swiss Re’s 2018 world insurance study is based on direct
premium data from 147 countries, with detailed information on the largest 88 markets. World insurance
premiums rose 1.5 percent in 2018, adjusted for inflation, to $5.2 trillion, reaching the $5 trillion mark
for the first time. 2018’s rise was above the 1.2 percent growth recorded in 2008 to 2017. Nonlife
premiums grew 3.0 percent in 2018, adjusted for inflation, faster than the 2.2 percent growth from 2008
to 2017. Life insurance premiums grew 0.2 percent in 2018, falling behind the 0.6 percent rise in 2008 to
2017, adjusted for inflation.

The insurance industry is a major component of the economy by virtue of the amount of premiums it
collects, the scale of its investment and, more fundamentally, the essential social and economic role it
plays by covering personal and business risks. This annual report monitors global insurance market trends
to support a better understanding of the insurance industry's overall performance and health

The OECD has collected and analysed data on insurance such as the number of insurance companies and
employees, insurance premiums and investments by insurance companies dating back to the early 1980s.
Over time, the framework of this exercise has expanded and now includes key balance sheet and income
statement items for the direct insurance and reinsurance sectors. This monitoring  report is compiled using
data from the OECD Global Insurance Statistics (GIS) database. The geographical reach of the GIS
database is constantly expanding and now covers 62 countries. In addition to OECD countries, this
includes: a number of non-OECD Latin American countries, achieved through cooperation with the
Association of Latin American Insurance Supervisors (ASSAL); several non-OECD countries in Asia; as
well as Lithuania, South Africa and Tunisia. This monitoring report and the GIS database provide an
increasingly valuable cross-country source of data and information on insurance sector developments for
use by governmental and supervisory authorities, central banks, the insurance sector and broader financial
industry, consumers and the research community.

Top 10 Countries By Life And Nonlife Direct Premiums Written, 2018 (1)
(US$ millions)
        Total premiums
Percent change
Rank Country Life premiums Nonlife premiums (2) Amount from prior year
1 United States (3), (4) $593,391 $875,984 $1,469,375 5.0%
2 PR China (4) 313,365 261,512 574,877 6.2
3 Japan (4), (5) 334,243 106,405 440,648 3.8
4 United Kingdom (4) 235,501 101,009 336,510 5.2
5 France (4) 165,075 92,888 257,963 5.6
6 Germany (4) 96,439 145,046 241,485 6.3
7 South Korea (5) 98,072 80,951 179,024 -1.2
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        Total premiums
8 Italy 125,341 44,933 170,273 6.9
9 Canada (4), (6) 54,070 73,833 121,181 5.5
10 Taiwan 102,044 19,864 121,908 3.8
(1) Before reinsurance transactions.
(2) Includes accident and health insurance.
(3) Nonlife premiums include state funds; life premiums are net premiums and include an estimate of
group pension business.
(4) Estimated or provisional.
(5) Financial year April 1, 2018 – March 31, 2019.
(6) Nonlife premiums are gross premiums, including reinsurance.

The report identifies five macro trends that are creating emerging risks for insurance customers and their
businesses: disruptive environmental patterns, technological advancements, evolving social and
demographic trends, new medical and health concerns, and business environment changes. Yet most
insurers have been slow to respond to these trends and equip customers for them. Under 25% of business
customers across all geographies, and less than 15% of personal policyholders, feel they have sufficient
coverage to insure against any one of the emerging risks driven by these macro trends. Fewer than 40% of
life and health insurers said they have built a pipeline of new products to cover emerging risks
comprehensively. The slow response to emerging threats has created significant coverage gaps for
customers exposed to these risks. The report estimates that 83% of personal insurance customers have
medium or high exposure to cyberattacks and to outliving their savings, yet just 3% and 5% respectively
are comprehensively covered against these eventualities. Among business customers, 81% are exposed to
escalating employee healthcare costs against which just 17% are well covered; 87% are at risk of
cyberattacks with less than 18% comprehensively insured; and almost 75% are threatened by rising natural
catastrophes, for which just 22% are effectively covered. As the insurance landscape shifts, customers are
showing greater readiness for change than their insurance providers. Over half (55%) of customers said
they are ready to explore new insurance models, but barely a quarter (26%) of insurers are investing in
them. While 37% of customers said they are highly willing to share additional data in return for improved
risk control and prevention services, only 27% of insurers have the capability to tap real-time data for risk
modelling purposes. Insurers must respond to emerging threats, and changing customer expectations, by
embracing new technology and partnerships. Risk assessment capabilities can be significantly enhanced
through deployment of machine learning, artificial intelligence and advanced analytics, and effective
collaboration with InsurTech providers. Progress in these areas has been mixed: a majority (57%) have
leveraged AI, machine learning and advanced analytics, but only 29% have implemented automated risk
assessment, and just 20% real-time insight generation from IoT devices. According to the report,
technological progress also needs to be matched by a shift in attitudes. Where insurers have traditionally
seen themselves as a payer, they need to evolve into the parallel roles of partner and preventer, working
more closely with customers to mitigate risks and provide on-demand services.

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1.4 INDIAN INSURANCE INDUSTRY

INTRODUCTION
Insurance in India refers to the market for insurance in India which covers both the public and private sector
organisations. 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 only.
The insurance sector has gone through a number of phases by allowing private companies to solicit
insurance and also allowing foreign direct investment. India allowed private companies in insurance sector
in 2000, setting a limit on FDI to 26%, which was increased to 49% in 2014.[1] Since the privatisation in
2001, the largest life-insurance company in India, Life Insurance Corporation of India has seen its market
share slowly slipping to private giants like HDFC Life, ICICI Prudential Life Insurance and SBI Life
Insurance Company.

The insurance industry of India consists of 57 insurance companies of which 24 are in life insurance
business and 33 are non-life insurers. 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.

HISTORY OF INDIAN INSURANCE INDUSTRY

Insurance in this current form has its history dating back to 1818 when Oriental Life Insurance
Company[2] was started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-
independence era in India saw discrimination between the lives of foreigners (English) and Indians with
higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the
first Indian insurer.[
At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life
Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The
Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical
valuations of companies should be certified by an actuary. However, the disparity still existed as
discrimination between Indian and foreign companies. The oldest existing insurance company in India is
the National Insurance Company, which was founded in 1906, and is still in business.
The Government of India issued an Ordinance on 19 January 1956 nationalising the Life Insurance sector
and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC)
absorbed 154 Indian, 16 non-Indian insurers and also 75 provident societies—245 Indian and foreign
insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act was passed by the Indian
Parliament, and consequently, General Insurance business was nationalized with effect from 1 January 1973.
107 insurers were amalgamated and grouped into four companies, namely National Insurance Company
Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India
Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in
1971 and it commenced business on 1 January 1973. The LIC had monopoly till the late 90s when the
Insurance sector was reopened to the private sector. Before that, the industry consisted of only two state
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insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance
Corporation of India, GIC). GIC had four subsidiary companies. With effect from December 2000, these
subsidiaries have been de-linked from the parent company and were set up as independent insurance
companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National
Insurance Company Limited and United India Insurance Company.
INDUSTRY STRUCTURE
By 2012 Indian Insurance is a US$72 billion industry. However, only two million people (0.2% of the total
population of 1 billion) are covered under Mediclaim. With more and more private companies in the sector,
this situation is expected to change. ECGC, ESIC and AIC provide insurance services for niche markets. So,
their scope is limited by legislation but enjoy some special powers. The majority of Western Countries have
state run medical systems so have less need for medical insurance. In the UK, for example, the corporate
cover of employees, when added to the individual purchase of coverage gives approximately 11–12% of the
population on cover due largely to usage of the state financed National Health Service (NHS), whereas in
developed nations with a more limited state system, like USA, about 75% of the total population are covered
under some insurance scheme.

INSURANCE REPOSITORY
On 16 September 2013, IRDA launched "insurance repository" services in India. It is a unique concept and
first to be introduced in India. This system enables policy holders to buy and keep insurance policies in
dematerialised or electronic form. Policyholders can hold all their insurance policies in an electronic format
in a single account called electronic insurance account (eIA). Insurance Regulatory and Development
Authority of India has issued licences to four entities to act as Insurance Repository:

 CDSL Insurance Repository Limited

 Karvy Insurance repository Limited
 NSDL Database Management Limited
 CAMS Repository Services Limited

LEGAL SRUCTURES

The insurance sector went through a full circle of phases from being unregulated to completely regulated and
then currently being partly deregulated. It is governed by a number of acts.
The Insurance Act of 1938[4] was the first legislation governing all forms of insurance to provide strict state
control over insurance business. Life insurance in India was completely nationalised on 19 January 1956,
through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were
merged into one entity, the Life Insurance Corporation of India.
The General Insurance Business Act of 1972 was enacted to nationalise about 107 general insurance
companies then and subsequently merging them into four companies. All the companies were amalgamated
into National Insurance, New India Assurance, Oriental Insurance and United India Insurance, which were
headquartered in each of the four metropolitan cities. Until 1999, there were no private insurance companies
in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999,
thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment
was also allowed and capped at 26% holding in the Indian insurance companies.
In 2006, the Actuaries Act was passed by parliament to give the profession statutory status on par with
Chartered Accountants, Notaries, Cost & Works Accountants, Advocates, Architects and Company
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Secretaries.A minimum capital of US$80 million(Rs. 4 billion) is required by legislation to set up an

insurance business.

1.5 SECTORS IN INDIAN INSURANCE

INTRODUCTION

Insurance industry in India has seen a major growth in the last decade along with an introduction of a huge
number of advanced products. This has led to a tough competition with a positive and healthy outcome.

Insurance sector in India plays a dynamic role in the wellbeing of its economy. It substantially increases the
opportunities for savings amongst the individuals, safeguards their future and helps the insurance sector form
a massive pool of funds.

With the help of these funds, the insurance sector highly contributes to the capital markets, thereby
increasing large infrastructure developments in India.

The Indian Insurance Sector

The Indian Insurance Sector is basically divided into two categories – Life Insurance and Non-life Insurance.
The Non-life Insurance sector is also termed as General Insurance. Both the Life Insurance and the Non-life
Insurance is governed by the IRDAI (Insurance Regulatory and Development Authority of India). The role
of IRDA is to thoroughly monitor the entire insurance sector in India and also act like a custodian of all the
insurance consumer rights. This is the reason all the insurers have to abide by the rules and regulations of the
IRDAI.

The Insurance sector in India consists of total 57 insurance companies. Out of which 24 companies are the
life insurance providers and the remaining 33 are non-life insurers. Out which there are seven public sector
companies. Life insurance companies offer coverage to the life of the individuals, whereas the non-life
insurance companies offer coverage with our day-to-day living like travel, health, our car and bikes, and
home insurance. Not only this, but the non-life insurance companies provide coverage for our industrial
equipment’s as well. Crop insurance for our farmers, gadget insurance for mobiles, pet insurance etc. are
some more insurance products being made available by the general insurance companies in India. The life
insurance companies have gained an investment prospectus in the recent times with an idea of providing
insurance along with a growth of your savings. But, the general insurance companies remain reluctant to
offer pure risk cover to the individuals.

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The insurance industry in India is at the crossroads of development. For any country and its economic
development, having a well-developed insurance sector that is evolving is definitely a boon. And, if you are
wondering what must be the reason for this, then the answer lies in the fact that this sector provides some long-
term funds for the development of the country’s infrastructure as well as strengthening the risk-taking ability of
the country. In India, the rapid rate at which economic growth has occurred in the past decade is a very
significant development, when you even look at it in terms of the global economic scenario. Know more about
the insurance industry in India in this article. These topics are important for many competitive and bank exams.
Apart from the exam criteria, knowledge of these topics increases your general awareness too. In India, the
insurance industry is as longstanding as the banking industry. But over the past fifteen years, there has been a
sea change in the business expansion of the insurance sector. The IRDAI (Insurance Regulatory and
Development Authority of India) was established in the year 2000, which opened this sector to private
enterprises and allowing Indian companies to partner with foreign establishments. This act has redefined the
insurance sector in India making insurance available at reasonable costs.

The insurance industry in India has around 57 insurance companies. Among these, 24 are in the life insurance
business and the rest are non-life insurers. The Life Insurance Corporation (LIC) is a sole public sector company
in the life insurance business sector. The non-life insurance companies have policies exclusively in personal
accident, health, travel insurance segments etc. A few of these companies include Apollo Munich Health
Insurance Company Ltd, Star Health, and Allied Insurance Company Ltd, Cigna TTK Health Insurance
Company Ltd. etc. The Export Credit Guarantee Corporation of India for Credit Insurance and Agriculture
Insurance Company Ltd for crop insurance belong to the public sector.

A Rapidly developing sector with a great future potential

This insurance sector is most developing one in India which fosters a positive market sentiment. There are some
major investments and other strong government initiatives that are pushing this sector towards a robust future.
An example for this is one of the programs of the government of India, the Pradhan Mantri Vaya Vandana
Yojana. It is a pension scheme that provides guaranteed 8 percent annual return to all the senior citizens above
the age of 60 years for a policy period of 10 years. The IRDAI is also planning to issue out IPO guidelines for
insurance companies that would want to divest through IPOs. The road ahead is certainly quite promising.
Currently, India has a 3.42 percent penetration rate in the insurance sector. It is expected to quadruple in size
over a period of next ten years.

The Present of Insurance Sector In India

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So far as the industry goes, LIC, New India, National Insurance, United insurance and Oriental are the only
government ruled entity that stands high both in the market share as well as their contribution to the
Insurance sector in India. There are two specialized insurers – Agriculture Insurance Company Ltd catering
to Crop Insurance and Export Credit Guarantee of India catering to Credit Insurance. Whereas, others are the
private insurers (both life and general) who have done a joint venture with foreign insurance companies to
start their insurance businesses in India.

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1.6 MARKET SIZE

Government's policy of insuring the uninsured has gradually pushed insurance penetration in the country and
proliferation of insurance schemes. Gross direct premiums of non-life insurers in India reached US$ 13.66
billion in FY20 (up to September 2019), gross direct premiums reached Rs 410.71 billion (US$ 5.87 billion),
showing a year-on-year growth rate of 14.47 per cent. Overall insurance penetration (premiums as per cent
of GDP) in India reached 3.69 per cent in 2017 from 2.71 per cent in 2001.

In FY19, premium from new life insurance business increased 10.73 per cent year-on-year to Rs 2.15 trillion
(US$ 30.7 billion). In FY20 (till July 2019), gross direct premiums of non-life insurers reached US$ 5.7
billion, showing a year-on-year growth rate of 16.65 per cent.
The market share of private sector companies in the non-life insurance market rose from 13.12 per cent in
FY03 to 55.70 per cent in FY20 (up to April 2019). The overall market for insurance is expected to be $ 280
bn by 2020. Gross premiums in India reached $ 94.48 bn in FY 18. Of this number, the split between life
insurance and non-life insurance was as follows

    Life insurance: $ 71.1 billion

    Non-life insurance: $ 23.38 billion

During FY 2017, life insurance companies issued 264.56 lakh new policies out of which LIC issued
201.32 lakh policies, while private insurance issued the remaining 63.24 lakh policies. In FY 2018, the
Life Insurance Corporation of India (LIC) reported a growth of ~8% in its new business premium as
compared to FY 2017. They continued to be the market leader by grabbing 69.40% of the market
share in the total first-year premium, and 75.67% in new policies.

Post-liberalisation, the insurance industry in India has recorded significant growth. The Indian insurance
industry is expected to grow to Rs 19,56,920 crore (US$ 280 billion) by FY2020, owing to the solid
economic growth and higher personal disposable incomes in the country. Overall insurance penetration in
India reached 3.69 per cent in 2017 from 2.71 per cent in 2001. Gross premiums written in India reached Rs
5,78,000 crore (US$ 82.8 billion) in FY19, with Rs 4,08,000 crore (US$ 58.5 billion) from life insurance and
Rs 1,69,000 crore (US$ 24.3 billion) from non-life insurance.
Life insurance industry in the country is expected grow 12-15 per cent annually for the next three to five
years.

Gross direct premiums of non-life insurers in India US$ 18.03 billion in FY20 (up to November 2019), gross
direct premiums reached US$ 5.87 billion, showing a year-on-year growth rate of 14.47 per cent and Gross
direct premium from health insurance reached Rs 8.48 crore (US$ 1.21 million) in FY20 (up to June 2019),
contributed 5.87 per cent to the gross direct premiums of non-life insurance companies in India.
Crop insurance segment contributed 30 per cent to gross direct premiums of non-life insurance companies in
FY20 (up to September 2019).

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1.7 INVESTMENTS

Investments and Recent Developments

The following are some of the major investments and developments in the Indian insurance sector.

 The non-life insurance companies witnessed a rise of 13.1 per cent in their collective premium in
November to Rs 14,590.50 crore (US$ 20.09 billion).
 In November 2019, Airtel partnered with Bharti AXA Life to launch prepaid bundle with insurance
cover.
 In September 2019, Competition Commission of India (CCI) approved acquisition of shares in SBI
General Insurance by Napean Opportunities LLP and Honey Wheat.
 As of November 2018, HDFC Ergo is in advanced talks to acquire Apollo Munich Health Insurance at
a valuation of around Rs 2,600 crore (US$ 370.05 million).
 In October 2018, Indian e-commerce major Flipkart entered the insurance space in partnership with
Bajaj Allianz to offer mobile insurance.
 In August 2018, a consortium of WestBridge Capital, billionaire investor Mr Rakesh Jhunjunwala
announced that it would acquire India’s largest health insurer Star Health and Allied Insurance in a deal
estimated at around US$ 1 billion.
 In September 2018, HDFC Ergo launched ‘E@Secure’ a cyber insurance policy for individuals.
 Insurance sector companies in India raised around Rs 434.3 billion (US$ 6.7 billion) through public
issues in 2017.
 In 2017, insurance sector in India saw 10 merger and acquisition (M&A) deals worth US$ 903 million.
 India's leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with Ebix Inc to build
a robust insurance distribution network in the country through a new distribution exchange platform.

OVER VIEW OF INDIAN INSURANCE INVESTMENTS

The investments of an insurance company are intended to build up reserves and not to book short-term
profits. These reserves provide a cushion for long-term contingencies, which can be directed towards
investment in socially desirable sectors like infrastructure.

The provisions of Section 27 A of the Insurance Act, 1938 as amended from time to time have prescribed the
investment patterns for life insurance. The Malhotra Committee (1994) had recommended that the mandated
investment of funds of LIC should be reduced from the then existing level of 75 per cent to 50 per cent.
Consequent to the liberalisation of the insurance sector, and as per the notification of IRDA (Investment)
Regulations, 2000 dated August 14, 2000, the life insurance companies have to invest a minimum of 50 per
cent of their total assets in government and other approved securities. They are also required to invest a
minimum of 15 per cent in infrastructure and social sectors, leaving the balance 35 per cent free for
investment in the capital market.

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1.8 GOVERNMENT INTIATIVES

The Government of India has taken a number of initiatives to boost the insurance industry. Some of
them are as follows:

 As per Union Budget 2019-20, 100 per cent foreign direct investment (FDI) permitted for insurance
intermediaries.
 In September 2018, National Health Protection Scheme was launched under Ayushman Bharat to
provide coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million vulnerable families. The
scheme is expected to increase penetration of health insurance in India from 34 per cent to 50 per
cent.
 Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana (PMFBY) in
2017-18.
 The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue redesigned
initial public offering (IPO) guidelines for insurance companies in India, which are to looking to
divest equity through the IPO route.
 IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds that are
issued by banks to augment their tier 1 capital, in order to expand the pool of eligible investors for
the banks.

Major initiatives

Insurance Laws (Amendment) Act, 2015

The Insurance Laws (Amendment) Bill, 2015 was passed by the Lok Sabha on 4th March, 2015 and by the
Rajya Sabha on 12th March, 2015, thus paving the way for major reform related amendments in the
Insurance Act, 1938, the General Insurance Business (Nationalization) Act, 1972 and the Insurance
Regulatory and Development Authority (IRDA) Act, 1999. The Insurance Laws (Amendment) Act 2015
enacted on 23rd March, 2015 has seamlessly replaced the Insurance Laws(Amendment) Ordinance, 2014,
which came into force on 26thDecember 2014..

The amendment Act removed archaic and redundant provisions in the legislations and incorporated certain
provisions to provide Insurance Regulatory and Development Authority of India (IRDAI) with the flexibility
to discharge its functions more effectively and efficiently. It also provided for enhancement of the foreign
investment cap in an Indian Insurance Company from 26% to an explicitly composite limit of 49% with the
safeguard of Indian ownership and control.

Rules and Regulation related to Foreign Investments

Government made the Indian Insurance Companies (Foreign Investment) Rules, 2015 regarding manner of
holding of equity shares by foreign investors. These Rules incorporated the standing / prevalent Regulations
and practices being followed with respect to the treatment of foreign investment in Indian Insurance
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companies by IRDA and as per the existing FDI policy of Government of India. The said Rules were
notified in the Gazette on 19th February, 2015.
Subsequently, Government issued a clarification in respect of rule 2(l) of the Indian Insurance Companies
(Foreign Investment) Rules, 2015, defining “Indian Ownership” vide thenotified on 3rd July, 2015.
Further, the Indian Insurance Companies (Foreign Investment) Rules, 2015 were amended vide the Indian
Insurance Companies (Foreign Investment) Amendment Rules, 2016 notified on the 16th March, 2016 to
enable foreign investment up to 49% in Insurance sector through automatic route instead of going through
the Government route for foreign investment beyond 26% and up to 49%.

FURTHER LAWS REGARDING FOREIGN INVESTMENTS

The manner of computation of Foreign Investments is governed by Regulation 11 of the Insurance

Regulatory and Development Authority (Registration of Indian Insurance Companies) (Seventh
Amendment) Regulations, 2016 and the Insurance Regulatory and Development Authority of India
(Registration of Indian Insurance Companies) (Eighth Amendment) Regulations, 2016.

Promoting Reinsurance Business in India

The Insurance Laws (Amendment) Act, 2015 enabled foreign reinsurers to setup branches in India and also
enabled Lloyds and its members to operate in India through setting up of branches for the purpose of
reinsurance business or as investors in an Indian Insurance Company within the 49% cap.

Redressal of Public Grievances ( Notification of Insurance Ombudsman Rules, 2017):

In exercise of the powers conferred by section 24 of the Insurance Regulatory and Development Authority
Act, 1999 (41 of 1999) and in supersession of the Redressal of Public Grievances Rules, 1998 the Central
Government has notified Insurance Ombudsman Rules, 2017 on [Link] objects of these Rules is to
resolve all complaints of all personal lines of insurance, group insurance policies, policies issued to sole
proprietorship and micro enterprises on the part of Insurance companies and their agents and intermediaries
in a cost effective and impartial manner.

Convergence of life and accident insurance schemes to PMJJBY and PMSBY:

In view of decisions taken in the meeting of Committee of Secretaries on Convergence of Insurance
Schemes held on 9th May, 2017 all Ministries / Departments except Ministry of Labour and Employment
(for Aam Aadmi Bima Yojana (AABY)) have converged their life and accident insurance schemes to
PMJJBY and PMSBY as on 1st June, 2017.
Listing of Public Sector General Insurance Companies
To promote the objective of achieving higher levels of transparency and accountability, the Cabinet
Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has on 18th January,
2017 given its ‘in principle’ approval for listing the five Government owned General Insurance Companies
namely General Insurance Corporation of India, The New India Assurance Company Ltd., United India
Insurance Company Ltd., Oriental Insurance Company Ltd. and National Insurance Company Ltd. in the
stock exchanges.
The shareholding of these Public Sector General Insurance Companies (PSGICs) will be divested from 100
percent to 75 percent in one or more tranches over a period of time. During the process of disinvestment,
existing rules and regulations of Securities and Exchange Board of India (SEBI) and Insurance Regulatory
and Development Authority of India (IRDAI) will be followed

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Recent Initiatives Taken by IRDAI

Insurance Marketing firms: IRDAI had recently brought in the new concept of intermediaries in the
insurance distribution known as Insurance Marketing Firm (IMF). The regulations came into effect from 21-
01-2015 which cover Insurance soliciting and servicing activities of the Insurance Marketing Firm, and its
functionaries including Insurance Sales Person (ISP). It is expected that the standalone marketing firms will
be established with the objective of distributing the insurance products which will pave the way for
penetration of insurance. In order to encourage more firms to pioneer as IMFs, they are also permitted to
simultaneously, market other financial products such as mutual funds of mutual fund companies; pension
products of PFRDA; and other financial products marketed by Investment advisors of SEBI etc. IMFs are
expected to help in increasing insurance penetration.

1.9 ROAD AHEAD

The future looks promising for the life insurance industry with several changes in regulatory framework
which will lead to further change in the way the industry conducts its business and engages with its
customers.
The overall insurance industry is expected to reach US$ 280 billion by 2020. Life insurance industry in the
country is expected grow by 12-15 per cent annually for the next three to five years.
Demographic factors such as growing middle class, young insurable population and growing awareness of
the need for protection and retirement planning will support the growth of Indian life insurance.

Road ahead for Insurance Sector post GST & Demonetization

The GST and demonetization were primarily aimed to be a push for shifting the unorganized sector to the
organized sector. All businesses, including the Insurance Industry, were influenced by the implementation
of GST and demonetization. And evidently, the economics of the country did witness a fundamental shift
in trends. But how does the mercantile landscape pan out to secure an accelerated growth in the Indian
insurance sector? Another key takeaway from post GST rollout is that the number of tax filed has seen a
significant jump. “If you look at the number of challans or the number of certifications, I think about 62.3
Lac registrations have happened compared to 56 lac during the same period last year. The GST is now
settling at about Rs 1 Lac crores a month. It was about 94,000 in May, but 1 Lac in April, which is way
above the average of about 85,000 last year” says the officials

VIEWS TOWARDS FUTURE OF INSURANCE SECTOR IN INDIA

The introduction of schemes is promising for the country’s citizens as it aims at helping the lower and lower-
middle income divisions of the country as they come with relatively lower insurance premiums. This is also
about to give the necessary boost to the overall economic stature of India.
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1.9 ONLINE INSURANCE

Today we live in a digital age, where everything is available at our fingertips and insurance is no exception.
A number of policy seekers are turning online for their insurance needs. Although the last few years have
seen a rise in the number of online insurance buyers. Online policies generally cost less since there is no
middleman involved. Therefore, companies are able to provide you online insurance policies at reduced
prices. Apart from this, you too save on commissions you may otherwise pay an agent. If you look at the
bigger picture, an online insurance plan is about 30 percent to 50 percent cheaper than an offline one.
Therefore, buying an insurance plan online ensures complete value for money.

When you buy insurance offline, you are mostly dependent on your agent with regards to the terms and
conditions and important policy information. It may happen that the agent does not thoroughly update you
regarding the policies. However, when you buy an insurance policy online, there is no intermediary
involved. This means that you need to thoroughly read the fine print of the policy, which in turn keeps you
well informed of what you are about to invest in. Buying an insurance online is hassle-free, wherein you get
all your policy related queries solved while on the go and even get authentic information. That’s why, when
you it comes to securing the future of your loved ones, online is the way to go.

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.
1.11 TYPES OF INSURNACE
Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims
are known as perils. An insurance policy will set out in detail which perils are covered by the policy and
which are not. Below are non-exhaustive lists of the many different types of insurance that exist. A single
policy that may cover risks in one or more of the categories set out below. For example, vehicle
insurance would typically cover both the property risk (theft or damage to the vehicle) and the liability risk
(legal claims arising from an accident). A home insurance policy in the United States typically includes
coverage for damage to the home and the owner's belongings, certain legal claims against the owner, and
even a small amount of coverage for medical expenses of guests who are injured on the owner's property.
Business insurance can take a number of different forms, such as the various kinds of professional liability
insurance, also called professional indemnity (PI), which are discussed below under that name; and
the business owner's policy (BOP), which packages into one policy many of the kinds of coverage that a
business owner needs, in a way analogous to how homeowners' insurance packages the coverages that a
homeowner needs.
Auto insurance
Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle
they own, such as in a traffic collision.
Coverage typically includes:

 Property coverage, for damage to or theft of the car

 Liability coverage, for the legal responsibility to others for bodily injury or property damage
 Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and
funeral expenses

Gap insurance

Gap insurance covers the excess amount on your auto loan in an instance where your insurance company
does not cover the entire loan. Depending on the company's specific policies it might or might not cover the
deductible as well. This coverage is marketed for those who put low down payments, have high interest rates
on their loans, and those with 60-month or longer terms. Gap insurance is typically offered by a finance
company when the vehicle owner purchases their vehicle, but many auto insurance companies offer this
coverage to consumers as well.

Health insurance
Health insurance policies cover the cost of medical treatments. Dental insurance, like medical insurance,
protects policyholders for dental costs. In most developed countries, all citizens receive some health
coverage from their governments, paid through taxation. In most countries, health insurance is often part of
an employer's benefits.

Life insurance
Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may
specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life
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insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum
cash payment or an annuity. In most states, a person cannot purchase a policy on another person without
their knowledge.
Annuities provide a stream of payments and are generally classified as insurance because they are issued by
insurance companies, are regulated as insurance, and require the same kinds of actuarial and investment
management expertise that life insurance requires. Annuities and pensions that pay a benefit for life are
sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial
resources. In that sense, they are the complement of life insurance and, from an underwriting perspective, are
the mirror image of life insurance.
Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is
surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies,
are financial instruments to accumulate or liquidate wealth when it is needed.
In many countries, such as the United States and the UK, the tax law provides that the interest on this cash
value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-
efficient method of saving as well as protection in the event of early death.

Property
Property insurance provides protection against risks to property, such as fire, theft or weather damage. This
may include specialized forms of insurance such as fire insurance, flood insurance, earthquake
insurance, home insurance, inland marine insurance or boiler insurance. The term property insurance may,
like casualty insurance, be used as a broad category of various subtypes of insurance, some of which are
listed below

 Aviation insurance protects aircraft hulls and spares, and associated liability risks, such as passenger and
third-party liability. Airports may also appear under this subcategory, including air traffic control and
refuelling operations for international airports through to smaller domestic exposures.
 Boiler insurance (also known as boiler and machinery insurance, or equipment breakdown insurance)
insures against accidental physical damage to boilers, equipment or machinery.
 Builder's risk insurance insures against the risk of physical loss or damage to property during
construction. Builder's risk insurance is typically written on an "all risk" basis covering damage arising
from any cause (including the negligence of the insured) not otherwise expressly excluded. Builder's risk
insurance is coverage that protects a person's or organization's insurable interest in materials, fixtures or
equipment being used in the construction or renovation of a building or structure should those items
sustain physical loss or damage from an insured peril.[31]
 Crop insurance may be purchased by farmers to reduce or manage various risks associated with growing
crops. Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or
disease.[32] Index-based insurance uses models of how climate extremes affect crop production to define
certain climate triggers that if surpassed have high probabilities of causing substantial crop loss. When
harvest losses occur associated with exceeding the climate trigger threshold, the index-insured farmer is
entitled to a compensation payment.[33]
 Earthquake insurance is a form of property insurance that pays the policyholder in the event of
an earthquake that causes damage to the property. Most ordinary home insurance policies do not cover
earthquake damage. Earthquake insurance policies generally feature a high deductible. Rates depend on
location and hence the likelihood of an earthquake, as well as the construction of the home.
 Fidelity bond is a form of casualty insurance that covers policyholders for losses incurred as a result of
fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest
acts of its employees.
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 Marine insurance and marine cargo insurance cover the loss or damage of vessels at sea or on inland
waterways, and of cargo in transit, regardless of the method of transit. When the owner of the cargo and
the carrier are separate corporations, marine cargo insurance typically compensates the owner of cargo
for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier
or the carrier's insurance. Many marine insurance underwriters will include "time element" coverage in
such policies, which extends the indemnity to cover loss of profit and other business expenses
attributable to the delay caused by a covered loss.

1.12 ADVANTAGES OF ONLINE INSURANCE

In one sentence, purchasing insurance online is convenient, fast and usually cost you lesser. The insurers
know the potential of this distribution channel and therefore have the entire product range-from life to
health, motor and travel-available on the net for you. With click of a mouse you can buy any policy from any
corner of the world at any point of time.

Advantages are as follows

Buying Benefits
The distribution efficiency also leads to cost efficiency. Since the customer buys directly from the insurer,
the distributor's margin (or commissions) is saved. Also, the entire process is carried in the virtual world and
is paperless, reducing the costs further. These savings are usually shared with the customer in the form of
lower premiums. The biggest benefit of online platform is that it offers the customer to make an informed
choice. Various aggregator sites, such as [Link], [Link] and [Link] let
you do an overall comparison of features and prices of a particular type of policy across various companies.
So, you can weigh the pros and cons and then buy the policy that suits your need the best. Moreover, when
buying online, you can check the reviews and comments section. This is first-hand posted genuine
information about the services of the insurer from existing customers-an important feedback that is missing
when buying from any other channel.

Automated Servicing
The online platform is not limited to sale. It is a prompt and efficient servicing channel as well, which can be
used by existing policyholders', regardless of whether you buy online or not. You can download product
literature like brochures and policy wordings, get quick premium quotes, renew your old policies, pay
premiums online, track your insurance investments and make online claims. The difference from offline
mode is that here you do not have to depend on anyone and are self-sufficient. Moreover, the processes are
hassle-free and you can complete a transaction at a much lesser time. 

Online Assistance
Since not all of us are equally net-savvy and may have reservations making financial transactions online, the
insurance company websites usually also have live chat facility on their websites where customers can seek
clarification in case of any doubt. Also, there is a toll-free number where you can call to take the offline
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route. You can either ask the representative you make the purchase for you telephonically by giving your
details or can also request for a face-to-face meeting. The insurer then sends an executive to help you make
the purchase. 

Claim settlement ratio

Having access to information on an insurance provider’s claim settlement ratio is helpful as it gives you a

clearer idea of how smooth your claim process might be. When you buy insurance online, you have easy
access to the company’s claim settlement ratio. On the other hand, when you buy offline insurance, there is a
high possibility of the agent tweaking this information in favour of the insurance company.

Being able to compare

One of the best ways to compare online insurance is with the help of an aggregator. This is a tool that
compiles information regarding different policies, their costs, their premiums, and benefits and presents it to
you under one portal. This makes your online insurance selection process much easier, as you are able to
compare different policies. However, when you buy insurance offline, the information you have is limited to
only what your agent tells you.

Flexibility

Buying insurance online is one of the most flexible processes as you are able to do so from any corner of the
world and at any time of the day. All you need for this is access to the Internet. On the other hand, offline
plans do not offer you this flexibility. 

Interacting with the insurer

Purchasing an insurance plan online allows you to interact with the insurer directly. From live customer
assistance chat tabs to regular updates on your policy premiums and renewal, the whole process of buying
insurance online is interactive. You also have access to the insurance provider at any time of the day.
However, with regards to offline policies, the agent may be unreachable at times.

Less frauds

Buying an insurance policy online eliminates the chances of a fraud, because you directly get it from the
company. In offline, there is no such certainty due to the possibility of being given bad information or a third
party submitting incorrect information.

Documentation

The best part of buying insurance online is that the whole process is paperless. So, you do not have to worry
about safeguarding your documents in fear of losing them as all your policy details are available online. 

Customer reviews

Word of mouth is the best form of advertising. This especially holds true in the case of online insurance
policies, where you have access to varied customer reviews about different policies. However, when you buy
an offline policy, all you have to rely on is the agent’s word.

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Value for money

Online policies generally cost less since there is no middleman involved. Therefore, companies are able to
provide you online insurance policies at reduced prices. Apart from this, you too save on commissions you
may otherwise pay an agent. If you look at the bigger picture, an online insurance plan is about 30 percent to
50 percent cheaper than an offline one. Therefore, buying an insurance plan online ensures complete value
for money.

1.13 DISADVANTAGES OF ONLINE INSURANCE

More and more people are looking to the internet for everything from information to making some big
purchases. Pre-ordering food and groceries has decreased the need for cashiers, ordering cars online has
decreased the need for car salesmen and online insurance quotes and purchasing ability has decreased the
ability of insurance agents. However as convenient as online insurance purchasing can be, there are some
things, such as your insurance policies that should not be left to chance by purchasing it online. Buying
insurance online can be dangerous for a number of reasons, and not just because it cuts out the insurance
agent.

Drawbacks of Buying Insurance Online

1. Misunderstanding. The first reason buying insurance online can be dangerous is because the quotes
and policies can be misunderstood and there are few chances to have those misunderstandings
explained from an expert prior to purchasing the insurance policy.

2. Custom Quotes and Policies are more difficult to set up. Every individual, family, and business is
different from one location to another, and so is the type of policy that is needed to cover those
needs. An online quote and policy purchase is not necessarily able to create a custom policy around
those needs of your family or business. This means you will most likely get a general policy that is
good for the average person, but not necessarily what is best for you.

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3. Not assigned an individual agent to handle your coverage. After buying insurance online you may
feel covered and protected. Having one client assigned to you for every potential claim you have to
file is a big advantage that you may be missing out on when buying insurance online. An individual
who knows your entire history from purchase to claim will be able to fight for you better than
someone who was randomly assigned for that one claim after buying online.

4. Adjusting your policy.  As businesses and families grow and change, your insurance policy should
change with it to make sure everything and, more importantly, everyone is covered. If buying
insurance online, you will rarely speak to the same agent twice and will lose that initial time savings
by needing to explain the changing circumstances around your family or business' insurance needs.

5. Lack of location specific assistance. Online quotes and purchasing sites give you the ability to see a
standard policy for your area. However, what it doesn't take into account is the individual needs for
your exact location and your family and business needs based on that information

STRATEGIES ADOPTED BY THE COMPANIES TO CAPTURE ONLINE

INSURANCE MARKETS

1. DOCTOR UP YOUR INSURANCE WEBSITE

The best insurance marketing campaigns start and end with your website. Your website is frequently the first
interaction policyholders will have with your company, and about 75% of them will judge your insurance
company’s credibility based on how it looks and functions. If they don’t connect with what they see within
10 seconds of landing on a webpage, they’ll move onto another provider. Three rules of thumb are that your
website needs to be fast, it needs to be secure, and it needs to be [Link] you know that over
50% of searches for insurance happen from mobile devices? That should tell you something about the
usability and customer experience potential policyholders expect.
But it isn’t enough to just be mobile-friendly. Your website needs to load in under three seconds 47% of
people expect a web page to load in two seconds or less! Considering the average mobile page speed is 15
seconds, you have work to do.

2. INVEST IN SEO
To interact with your website, policyholders have to be able to find you. Considering 93% of online
experiences begin with a search engine, you need to somehow get yourself to the top of the first search
engine results page—most people won’t venture past the first three organic search results.
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3. INVEST IN “DEER-IN-HEADLIGHTS” RESOURCES

Don’t give them too many choices on your website’s main pages. Insurance is already overwhelming, and
having too many options can tip website visitors over the edge. Figure out what the most important things
people need from you and focus on those.

4. COMMUNICATE YOUR BRAND THROUGH VIDEO MARKETING

Video marketing is THE thing. Consumers in the U.S. now watch up to six hours of digital video per day.
It’s not just for B2C, either—73% of B2B marketing professionals say that video has positively impacted
marketing results. Below are a few video marketing ideas to get you started.

 Create how-to or informative videos – 86% of YouTube viewers say they often use YouTube to
learn new things—so give them what they want. Teach them how to take care of their jewelry correctly.
Teach them how to find the best insurance rates. Teach them how to inspect their home’s foundation for
cracks. The options are endless.
 Feature policyholder testimonials – The number one mistake most insurance companies make is
being self-centered. Stop making videos about yourself. Nobody cares why you think you’re great—
they care why your policyholders think you’re great. Communicate that with spotlight videos
featuring policyholders you’ve helped. Communicate your brand values by showing them, not
talking about them.
 Show your commitment to society – Social responsibility is expected from insurance companies,
and your company is no exception.
CHAPTER 2. RESEARCH METHODOLOGY

2.1. INTRODUCTION TO RESEARCH METHODOLOGY

Research is a systematic investigation to search new facts in any branch of knowledge. Research helps to
arrive at new conclusions. It enables to find solutions to certain problems. Research is often referred for new
conclusions. It enables to find solutions to certain problems or situation. This is because search for facts
needs to be undertaken systematically and not arbitrarily. The approach of research enables the research for
facts in rational manner and to arrive at logical conclusions, whereas, the arbitrary approach attempts to find
solutions to problems based on one‘s belief ad imagination

Research methodology is logical and systematic collection of how the project is being done. It provides the
reader an outline about how was the research conducted. It gives details about target audience, how many

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respondents responded to the survey conducted for the project, what kind of respondents responded (e.g.
Students, particular professionals etc.)

It also gives information about how the material related to research was collected. The data may either be
primary or secondary depending upon the title and type of research conducted. It then gives information
about how the data was interpreted. Various tools used for analyzing the data and arriving at conclusions
also forms a part of research methodology. It at last states to whom the research and its contents are
important

At last it states the limitations of the research studied

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2.1.1 INTRODUCTION TO TITLE

Instrument design
The questionnaire designed to measure customers’ perceptions about online insurance services was adapted
and modified from the research conducted by Akinci et on customers’ attitudes toward internet banking .The
original questionnaire was modified according to the insurance services provided by Insurance companies in
India. The purpose of the research was to understand the Indian customers’ behavior toward online insurance
with respect to technological and service attributes. This is in line with the growing adoption of technology
by insurance companies in India in enabling transaction and improving accessibility. The total items were
23: 2 items in the scale related to awareness and use of online insurance services and the rest of the 21 items
were related to various dimensions of online insurance services. The questionnaires were administered in
English, as most Indians are fluent with English language. The responses of the customers were taken on a
five-point Likert scale with responses varying on the scale of 1 for strongly agree and 5 for strongly
disagree.

Sample
Random convenience sampling was done. Data were collected by contacting customers of insurance
companies. The customers visiting four insurance companies (Birla Sunlife, ICICI Prudential, Life Insurance
Corporation of India and Aviva) were contacted during office working hours. Initially, the insurance
companies were requested to provide the list of their customers. Random sampling was used to contact the
respondents from the list provided. A preliminary question about Internet literacy and accessibility was
asked to the customers before enlisting their cooperation in the research. The questionnaires were filled by
personally contacting the respondents and explaining to them the purpose of the research. The fieldwork was
handled by postgraduate management students. The items of the questionnaire had to be explained and their
responses were recorded. The sample consisted of both online insurance service users and non-users, so that
we could get a fair idea about customers’ perceptions regarding online insurance shopping behavior. The
sample size was 200, and we could use 192 complete questionnaires for our analysis. The total sample
comprised of 135 female respondents and 57 male respondents. One of the limitations of the current sample
is that respondents contacted for survey comprised of people who were conversant with Internet and were
using it for financial services. It eliminated older population groups as it was found that older people were
comfortable using insurance agents for renewing or applying for a new policy. They were not conversant
with Internet and consequently rejected for the survey. The large representation of females in the sample is
because the researchers were able get the help of female respondents easily for filling the questionnaire.
Many of the male respondents refused to cooperate because of paucity of time.

In India, Internet penetration is on the increase but it is hindered by connectivity problems. This restricts
customers from accessing company Web sites due to broken links and server problems. Being accustomed to
insurance agents for paying their annual premiums and renewing a policy, Internet is considered unsuitable
for regular transactions. Government or semi-government insurance companies are preferred over private
companies. 

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2.2. OBJECTIVES

The objectives of the project are as follows:

I. To understand impact of online insurance on people

II. To understand the perception of people towards the concept of online insurance and to study their
choices

III. To understand customer satisfaction level towards the services provided by the insurance
companies , its services & it‘s market penetration.

IV. To study the socio economic profile of the customers and their association between various
factors and their level of awareness towards online insurance

V. To study the on-line insurance Awareness and buying behaviour of the consumers

VI. To analyse the variables influencing customer satisfaction on on-line insurance

VII. To identify the problems faced by customers on on-line insurance and suggest suitable measures
to improve quality of on-line insurance services.

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2.3. HYPOTHESIS

The hypothesis is a tentative assumption made to test its logical or empirical consequences. The
hypothesis should be formulated on the basis of insight and knowledge about the problem. It may
prove to be either right or wrong.

A hypothesis has classical been referred to as an educated guess. In the context of the scientific
method, this description is somewhat correct. After a problem is identified, the scientist would
typically conduct some research about the problem and then make a hypothesis about what will
happen during his or her experiment. A better explanation of the purpose of a hypothesis is that a
hypothesis is a proposed solution to a problem. Hypotheses have not yet been supported by any
measurable data. In fact, we often confuse this term with the word theory in our everyday language.
People say that they have theories about different situations and problems that occur in their lives but
a theory implies that there has been much data to support the explanation. When we use this term we
are actually referring to a hypothesis

The hypothesis guides the research effort and suggests what data are required

We, therefore, formulate the following hypothesis to be tested.

Hypothesis 1:
 There will be a relationship between the technological attributes of the insurance company's Web site
and customers’ behaviour toward online insurance services.

Hypothesis 2:
 There will be a relationship between the service/relationship attributes of the insurance company's
Web site and customers’ behaviour toward online insurance services.

Hypothesis 3:
 The customer online insurance shopping behaviour would differ according to the age of the
customers.

Hypothesis 4:
 The customers’ online insurance shopping behaviour would be dependent on technological, service
attributes and age of online insurance firms’ Web sites.

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2.4. RESEARCH METHODOLOGY

2.4.1. UNIVERSE OF RESEARCH

The universe of this project comprises of respondents belonging to different age groups, streams
and professional background.

2.4.2. METHOD OF SAMPLING

For the purpose of survey, sampling method was used to collect information. Sampling is a
statistical process of selecting few representatives from the population, called as a sample, on the
basis of which the characteristics of the total population can be ascertained.
Method of random sampling used in the research. In random sampling, Every element has an
equal chance of getting selected to be the part sample. It is used when we don‘t have any kind of
prior information about the target population.

2.4.3. SAMPLE SIZE

For the purpose of survey, responses from 100 respondents belonging to different streams,
professional background and age groups were collected.

2.4.4. METHODS OF DATA COLLECTION

A. The data was collected by 2 modes

i. Primary Data Collection Method

For the purpose of this research, the data was collected by the method of questionnaire and
interviews.

ii. Secondary Data Collection Method

For the purpose of this research, the data was also collected by referring to previous research
papers, reports, business journals and books relating to the topic of telecom industry.

2.4.5. TOOLS USED FOR ANALYSIS

For the purpose of analyzing the data collected, tools like pie diagrams and bar graphs are put to
use.

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2.5. IMPORTANCE OF STUDY

The present study is significant because it will highlight the key strategies which have been employed by
various insurance companies within the Indian market. It has been identified that there are limited studies
and research papers conducted in the insurance industry towards perception of people towards online
insurance. However, most of the studies focus on providing the overview of online insurance , and not a
single research is directed towards identifying the overall impact of online insurance on the insurance
industry of India as well as the general public.

It can be asserted that data from different primary and secondary sources will be collected in this study to
understand the innovative business model and strategies adopted by insurance industries to carry out its
business operations in the highly competitive insurance industry of the country and to understand the public
perspective on online insurance. The study is significant in an academic context as it will help the readers to
understand the value of innovations in today‘s corporate era. From a business viewpoint, the study is crucial
as it will outline the strategies which can be incorporated by companies to gain competitive advantage and
dominate the entire market. Therefore, it can be asserted that the study is going to play a critical role in both
academic as well as corporate level.

2.6. LIMITATIONS OF STUDY

Impact of Reliance Jio on telecom industry had a few limitations. The limitations of the study are as
follows:

1. Time: Telecom industry is a broad concept. Hence its study requires elaborate time for analysis and
findings

2. Respondents’ opinions: Answers of respondents have found to be random and appear to be bias as well.

3. Incomplete answers: Incomplete or gauge answers have been found. Hence, it is difficult to bring out the
true picture of respondents‘ opinions.

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CHAPTER 3. REVIEW OF LITERATURE

The chapter of the literature review is considered as the most critical chapter of a study as it directly
contributes to enhancing the knowledge base of the researcher with regards to the subject matter. In
this chapter, the researcher focuses on searching and evaluating differently available literature to gain
a better understanding of the topic selected for investigation. The viewpoints and work carried out by
other researchers and authors are taken into consideration in this chapter. Here, different themes are
developed by the researcher to gain in-depth information about the topic chosen for the study. The
key themes covered in the present section of the literature review are an overview of the Indian
insurance industry to study its various business models and to study the perception of people towards
online insurance

The study was conducted in western Mumbai which consists of and mainly the areas from Bandra to
Borivali, in Mumbai. Primary data were collected through questionnaire and field work. Secondary
data were collected from government records, newspapers, business magazines, websites and some
important sources of information used in this work. The main reason for choosing Mumbai city is
that investigator is located here and is familiar with the people. The study includes all categories of
respondents. The respondents were selected on the basis of non- probability convenience sampling.
Statistical tools used for the study area

Research states that online shoppers differ in their perceptions and attributes they assign to evaluate
the service. Service providers encounter tremendous pressure in designing service attributes that
address needs of the [Link] customer's behavior toward service features and
technological innovations becomes pertinent. Service quality strategies have to be customer-centric
that focus on behavioral intentions of the customer. Internet decreases transaction and operating costs
and facilitates efficient transactions. Services are heterogeneous in nature as they are produced and
consumed during service encounters. It is important that online service experience should prompt
customer [Link] et al  posit that online environment provides convenience to
shoppers, increases interactivity, customer support and fosters relationships. Various Web sites
attributes affect customer satisfaction and motivate them to use online services. Szymanski and
Hise suggest the importance of four Web dimensions; namely, convenience, merchandizing, site
design and financial security as qualifications to customer satisfaction. Taylor and Brown state that
humans select, interpret and process stimuli or information based on their existing attitudes. The
interpretation of information is based on how well it fits into their lifestyle. Zeithaml posit that
customers’ assess the service based on what they believe they should receive in return for the
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resources they are expending. The outcome is dependent on the value customers derive from the
interaction and exchange. Online Web sites are evaluated according to accessibility, interactivity,
information availability and their ability to deliver the service.

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Technological attributes

Davis in his Technology Acceptance Model states that the individuals’ acceptance of technology depends on
their attitude toward using the technology. The ease of use and usefulness play a pivotal role in adoption of
the technology. Further research added a new attribute to the above-mentioned attributes. Davis et al  state
that use of technology is amplified if the customers feel a sense of enjoyment in using it. The online service
experience is enhanced with the interactivity and enjoyment features of the Web site. Lin and Wu postulate
that customer satisfaction and adoption of technology is related to attributes such as information content,
customization and reliability. The customers’ responses have a significant effect on their perceived ease of
use and usefulness of the Web sites. The implications of any innovation can be measured by the volume of
use and how far it fits into the customers’ requirement.

Technology use in services has made it possible for service providers to offer personalized services to
customers. The acceptability of technology in insurance sector is of interest to the Insurance companies. It is
inevitable that receptivity of the customers has to be grasped for making the necessary customizations in the
Web sites. Balasubramanian et al  posit that trust plays a significant role in driving customer satisfaction in
financial services, especially in online insurance services. Technology can tackle trust related expectation of
customers as it is closely linked with security and system integrity.

Technical software issues may create technical glitches and affect customer satisfaction. The broken links on
the Web sites demotivate the customer from visiting the Web site. The service companies can reduce these
technical problems by eliminating links that do not open or work. Luna et al  postulates that content and
structure of information on Web sites are prerequisites for making customer comfortable in using it. If the
technical features are simple and instructions easy to follow, the customer would feel comfortable in
navigating the Web site. The customers’ inhibitions are attributed to their lack of experience about online
insurance services. Researchers have voiced concern about selling insurance online, as they feel that Internet
will remain secondary to traditional direct interactive channels. Montoya-Weiss et al  recommend
understanding customers’ behavior toward Web site design and technical features for online services. The
ease-of-navigation and user-friendly attributes are important determinants of online retailing.

Customers prefer direct channels for seeking information about the insurance products. Buchner states that
many customers prefer to speak to an insurance agent for purchasing a policy and are not comfortable
shopping for insurance online. Customers place high priority to security attributes, and ‘technical safety of
the network against fraud or hackers’is a high concern. Customers’ concerns can be categorized as financial
and non-financial, which affect their evaluations. The customer satisfaction in online financial service
depends on easy navigation, availability of information, graphics and security in transaction

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Service attributes

Hitt and Frei in their research on Internet banking suggest that customers engage in online banking because
of its convenience, thus online service models must reiterate the convenience. Even though people may be
comfortable browsing Internet, when it comes to shopping on the Web, they expect promptness in service
delivery. Easy Web accessibility is one of the factors affecting customers’ interaction and perception toward
online service Web sites. Joseph and Stone speculate that online users expect access to online service even
from remote places, and accessibility can improve their attitude toward online systems. The time spent in
waiting for the service to be delivered can be exponentially reduced in online systems. Tan et al state that
Web site's accessibility relates to easy contact possible through the Web site at customers’ convenience.
Ranganathan and Ganapathy suggest that convenience and time-saving features are important factors
influencing consumer online shopping behavior. Online service models enable access to information and
facilitate comparisons between products of different service providers. Customers can seek appropriate
information on the Web site, which fulfills their needs and knowledge about the products. While using e-
commerce services, customers give importance to transaction costs, and service quality.

Customers are willing to adopt e-commerce if they are assured that their problems will be tackled and
confidentiality will be ensured during transactions; similar behavior may be expected in case of online
insurance. During the past decade, the ubiquity of Internet has made it possible for customers to access
insurance services online for gathering information about products, financial consultancy and indemnity
planning.

An important attribute of online insurance service satisfaction is the trust customer envisages while using the
service. Research states that online trust is important in online environmentsand customers’ satisfaction and
loyalty is governed by Web sites’ security features. Online service models are faceless and customers prefer
direct face-to-face interaction where their problems and queries would be handled. Most customers lack
information about the Web site and are uninformed about the procedures of transaction and outcome.

In India, Internet penetration is on the increase but it is hindered by connectivity problems. This restricts
customers from accessing company Web sites due to broken links and server problems. Being accustomed to
insurance agents for paying their annual premiums and renewing a policy, Internet is considered unsuitable
for regular transactions. Government or semi-government insurance companies are preferred over private
companies. Insurance companies find it difficult to comprehend the expectations of customers regarding
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service quality attributes. Considering the intangible nature of services, customers’ evaluations and
expectations would vary according to their Internet usage pattern and across age groups. Dholakia and
Uusitalo state that online shopping behavior of youth differs from that of the older customer age group. The
youth seeks more variety and explores Web sites for hedonic attributes. The older customers do not feel
comfortable with online insurance services and may have to be motivated to try out online services.

1. Baal N. and Sandhog H. S. (August 2011)

A study on Life Insurance Corporation of India (LIC) the capital demanding business, supplies the
most important financial instruments to customers directed at safety as well as long term savings.
The present study by examines the parts affecting agent’s perception towards Life Insurance
Corporation of India. Moreover, analysis of one way arrangement has also been performed to test the
important results to show that no important differences exist among various groups of respondent
regarding to their apprehension towards Life Insurance Corporation of India.

2. Baal N. and Sandhog H. S. et al (August 2011)

With the access of so many players in the field and the consistent competitive activism, the choate
area of the service sector is observing a multi-dimensional, purposeful, consumer-friendly approach,
shedding off the apathy that had come to be affiliated with the sector. The findings of the study imply
that the gap scores do not amalgamate into five dimensions of service quality rather, than the
perception scores merge into three dimensions

3. Meera C. and Eswari M. (November 2011)

In modern aggressive environment services are ameliorate accumulating more denotation.

Nowadays, greater absorption is paid to all the bank customer touch points, address to optimise the
reciprocal and user friendly services. The aim of the study by is to crumb the customers bliss towards
cross selling of insurance products and other services accomplished by private sector banks.

4. Singh H. and Loll M (December 2011)

States that life insurance is one of the fastest growing and emerging markets in India. Insurance
diffusion in rural area – the insurance industry has an acceptation grant in socio-economic

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development. Objective of the present study is to appraise the opportunities for insurers in the rural
market and what would be new action to tap the highly underinsured rural area

5. Friar F. and Khanbashi M. et al (December 2011)

This study is one of the most conscious actions taken in alluring and gratifying needs of customers is
chattering a charismatic information mechanism and feedback process between organisation and
customers. The aim of this study by, is finding of the variation between anticipation of the employees
and customers towards service quality in insurance industry of Iran. The study revealed that there is
cogent difference between the anticipation of staff and customers towards the tangibles dimension while
the anticipation of both the groups towards the other dimensions is homogenous.

6. Sharma M. and Vijay T. S. et al (January 2012)

The animus of this study is to assay the brunt of demographic factors on the level of satiety of
investor’s contra insurance policies. The study entraps the impact of demographics factors on the
satisfaction of investors towards insurance policies. This paper also evaluates cogent relationship
between demographic factors and overall satisfaction of the customers towards the insurance policies

7. Gautam V and Kumar M (March 2012)

The present research is an effort, to allegorise the attitudes of Indian consumers towards the
insurance services. The study has been made by accumulating the antiphon of consumers through
structured questionnaire on five point Likert scale. The decree of the present study may act as an
important aspect for the insurance companies in Indian market to flounce marketing strategies
established on socio demographic and economic factors.

8. Ansari Z. A. (March 2012)

In the present study examines the attitude of individuals towards different kinds of risks and scope
they prefer in Saudi Arabia. The study by further examine how the use of insurance particularly the
binding insurance has altered the perception towards risks and their future behaviour towards buying
other insurance policies and also what features the users of insurance suggest in their insurance
policy contract. The study is based on primary data collected aimlessly from current users of binding
insurance policies that is motor insurance and health insurance and life insurance.

9. Srivastava A. and Tripathi S. et al (April 2012)

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Is a study on insurance industry bequeaths to the financial sector of an economy and also renders the
paramount social covenant in developing countries. Hence, the study on Indian life insurance
industry and their changing trends concluded that though the sector is rapidly growing, the industry
has not yet insured even 50% of insurable population of India. To achieve this objective, this sector
requires more improvement in the insurance density and insurance penetration.

10. Bodla B. S. and Chaudhary K. (May 2012)

Present study by, looks for to determine the expected and anticipated service quality level along with
gaps on the origin of service quality model by Suresh Chandar et al (2001) in one of the superior
private sector company, ICICIPLI – ICICI Prudential Life Insurance Company. Though altogether
private sector has importantly apprehended the market share at first but now days and most of the
private sector companies are assaying for customary expansion in business and market share and the
picked company is one of them.

11. Das S. K. (June 2012)

A study on insurance has been as essential part of financial services system and acknowledged as a vital
element of a country’s financial health and mark of progress. Insurance suppliers for the financial
security of citizens and proposes valuable investment advices and serves as a persuasive step towards
both individual and national financial stability. It is found that high operating cost, exertion break even,
confluence of accounting standard etc are the main issues of life insurance companies in India.

12. Borah S. (November 2012)

The study done by was in Jorhat branch on the concomitant notion of marketing accentuates on the
gratification of customers. Marketing actualize and end with the customers. The study on customer
satisfaction on products of private sector insurance company with reference to Kotak Mahindra life
insurance company ltd revealed that most of the customers are gratified and are satisfied with the
same

13 L Sreenivas. D. and B Anand M. (December 2012)

in the Indian Lexicon, the insurance convention among the general public during the independence
decade was infrequent but yet was an extraordinary furtherance in the Indian insurance industry soon
after the economic reforms a con due to healthy race from many national as well as international
private insurance players. The study entrap by, was a way to try to determine the investors

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understanding towards public and private life insurance companies in India with special regards to
Karnataka.

13. V Ravi and Gulati K et al (2012)

The financial ameliorate posture a lot of confrontation before the Indian insurance sector, one of the
considerable demos faced by insurance companies’ accord with the customer complacency and
adherence. The study revealed the considerable observations in customers’ expectations and
perceptions from insurance services thus knowing dissatisfaction among insurance company
customers

14. Babu P. R. (February 2013)

In his study by, on the private sector life insurance companies have been making briskly clump in
terms of increasing their augmentation and market share since year 2000. The Indian life insurance
system is having cogent base on mixed economic system where in the public sector engaged a
monopolistic position in life insurance business. Private players play an extensive aspect in life
insurance business more energetic and customer friendly

15. Bihani P. and Bhowal A. (April 2013)

Has said that life insurance industry is in an augmentation aspect and cyclic advancements are going
on with respect to products and services. The most alluring finding of the study was the severity of
customer solution experienced is more that degree of customer solution expected

16. Purusothaman U. R. (July 2013)

Has said that India has extensively been known for the divergence of its culture, for the amplitude of its
people and for the accessibility of geography. Its basin of technical skills, its base of an English speaking
populace with an increasing disposable income and its blooming market have all co adjure and accredit
India engrosses as an operable partner to global industry. Hence, the study revealed that India ranks fifth
on the overall index, as the number of points is more desirable on the country economy development
index and the real estate market index, but fairly low on the regulatory index.

17. Padhi B. (August 2013

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A study on Indian insurance market was nationalized in 1956 and LIC of India was setup. LIC of
India adored monopoly on Indian Insurance market for more than 4 decades. The study by will reveal
the performance of particular private insurance companies in the segments like number of policies
floated number of money collected through premium and the annual expansion in the specific areas
from 2001 to 2012.

18. Rajan J. and Gomatheeswaran M. (August 2013)

A study by this scholar states that complete and persuasive banking system is required for a healthy
economy. In the recent years new trends have raised in the banking sector. The correlative study
conducted by on public and private sector banks limelight on the level of customer satisfaction on
bancassurance services.

19. Gaikwad A. S. and Vibhute S.G. (August 2013)

A study about Indian insurance industry is in an unsettled situation. This study by, will ease the insurance
companies to know the opinions of customers concerning insurance industry and particularly opinions
towards traditional and ULIP plan. Along with this, the company and advisors would empathy the
accurate demand of samples, the limit of customer satisfaction. Factors customer acknowledge while
choosing the policy and opinions on advisors advocacy by which company and advisors can draft their
sales program, sales speech, local strategies and the like

20. Kathirvel N. and Radhamani S. (September 2013)

Study on the insurance industry forms an essential part of the Indian financial market, with insurance
companies being cogent with institutional investors. The study by, conclude the study as an attempt to calculate
the various parameters as perspective by the policy holders and to provide assistance to the insurance company
in serving its policy holders in a much better and smooth way.

21. Mahajan K. (November 2013)

Study about India after liberalisation, has been advancing the culture of investment in financial works; which
has uncloaked up huge change for insurance firms to capture these opportunities the insurance firms have come
up with cautious marketing plans, so that, it helps them to accomplish their objectives at one end and assist the
Indian customer to travel from unknown to known product zone.

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22. Damtew K. and Pagidimarri V. (December 2013)

Different policy holders by are basic for insurers for their life and wealth in today’s opposing
business environment .Customers can purchase various and more policies from the same provider and
restore their agreements before end date if they have belief on their relevant providers. This reverie
aims to analyze the role of trust in building customer faithfulness in the insurance sector. In order to
earn this aim, nonexperimental reverie was made for this reverie and to evoke policy holder’s
perception, systematic questionnaires were designed and then research is made and outcomes are
described.

23. Ali L. and Chatley P. (2013)

Bancassurance as an aqueduct of selling insurance has fast ameliorated impulse in the Indian
insurance scene. Hence conveying that future of bancassurance can be bright in India too if the
aggravating ascend companies can channelize their achievements cogently is for corporate image
taking the place by size of operations and customer satisfaction and adeptness in sales process

24. Prakash N. and Sugumaran G. (January 2014)

In their research work stated that India which has a behemoth population abominable and are not
tapped by life insurance market, which in turn concocted an favourable circumstances for the Indian
and foreign nationals to entrust in this market. For the customers of the private sector, the apical mean
value to egress the customer’s needs and wants.

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25. Choudhari P. S. (January 2014)

Study indicates that the age of information technology, customers are not only fully alert of their
needs and requirements, expectations and information technology enabled services but also conserve
day to day communication with the different kinds of service provider in their life for their own
interest and getting their services in various ways. In this paper the researcher tried to find out
whether there exist any cogent service quality gap in between insurer’s perception of customers
service expectation and customers expectations of quality of services provided by the LIC of India in
Burdwan district.

26. Thirupathi T. (January 2014)

Life Insurance Corporation of India (LIC) is the largest insurance group and investment company in
India. They prefer private insurance sectors because they provide them the banking facility and a lot
of value added services so it will be beneficial both to common public and the LIC if it offers banking
facility to the policy holders and the common public. The study revealed that the policy holders have
bought out the expectations of the policyholders and their preferences. It has also offered suggestions
that can be implemented for the benefit of the common public and the government.

27. Mehta D. and Tripathi A. (February 2014)

In his study has stated that insurance sector in India is sprouting at a very swift stride. With the
entrant of new and more and more private sector the feuding within the industry is becoming very
fierce. Thus, today to survive in the market the very vital element for any company is to take notice of
the customer’s satisfaction to maintain, cherish and attract their potential clients.

28. Ahmed A. and Kwatra N. (March 2014)

This papers aims at judging the quality of insurance services in India through customer’s
determination and how this can be used to increase the demand for insurance which is at present low
in India. The study by revealed among other things that the total number of death claim settled by an
insurance company is the most important factor considered by the customers of insurance companies
in India in their judgement and calculation of quality of the policies they are holding. The study
therefore advises that the culture of deferment in premium payment or non-payment should be
gridlocked and organisations should look in going to see the acumen why the payment of premium is
a difficulty.

29. Bapat H. B. and Soni V. et al (April 2014)

Reverie states the requirement for insurance is as old as commerce and trading that exists in the
world. Uncertainty is built in to life, commerce, trading etc. where insurance will provide protection

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to it. The reverie finds out their present levels of the products offering on the basis of Servqual scope.
This reverie provides sagacity to the practicing administrator to recognize the gap in take influence by
aims the expected quality product.

30. Bhowal A. and Pankaj B. (April 2014)

Life insurance industry is in growing juncture and daily new developments are going on in regards to
products and services. Given the empirical research methods and specially contriving scaling technique, the
study resulted that the difference between the degree of customer cost conventional from the insurance and
the degree of the customer cost experienced is statistically not cogent.

31. Choudhari P. S. (April 2014)

Due to the aftermath of the various elements of the globalisation, customers socio-economic culture has
heretofore been changed and human interactions are now cogently being recouped by the interactions of
human – technology where in service sector, the information technology is playing the role in supplying
quality of services to the customers in order to amuse the customers in the present competitive market. In
this study, devout observation was taken place about the propitiating impact of the information technology
on the anticipated service quality and customer satisfaction link in life insurance services.

32. Ch S. (May 2014)

study reflects that presently more than 40% of the businesses of the insurance companies are done through
the bancassurance medium. The finding of the study reveals that the insurance company can actualize almost
all the benefits of bancassurance through selling their product by using the database of banks and their
branch aperture. In India 70 percent of the population are not under the inclusion of insurance distinctively
in rural areas.

33. Barik B. and Patra R. (June 2014)

In his study stated that the Indian life insurance sector is amplifying at an accelerate rate. The study revealed
that life insurance business in India needs a special care as compared to other business, both theory and
practise to be integrated to provide the best services to the policy holders. Hence, this study by the
researchers has been done with an intention to help with suggestion and recommendation that will help both
academician and industry personnel to re-engineer their thought in insurance sector.

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34. Chand M. (June 2014)

studies the main change of life insurance industry in India is the gapping up to private and global players.
The study will reveal the aspect of private insurance players in the areas and like number of policies glided,
amount of premium money collected, agent or broker commission expenses, and operating expenses from
2001 -2012.

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35. Prasad K. and Sravanthi V. (October 2014)

Insurance industry is an expand-acclimatised industry. In India, the industry has commenced to disclose the
promising after liberalisation and privatisation of the sector. The insurance industry study by has achieved
cogently in India’s growth story in past few years. These two are often used to determine the level of growth
of the insurance sector in a country.

36. Dash B. and Mohanty B et al (November 2014)

This research reverie by is focused on effect of customer relationship management fashion on insurance
sector in Odisha market. In this reverie customer’s belief have been gathered through a structured
questionnaire to comprehend the effectiveness of CRM implementation in association with the companies
like Aviva, LIC of India, ICICI Prudential, Birla Sun Life and Reliance.

37. Satya K. K.V. R. and Radha B. et al (December 2014)

The study done by has an objective to study osmosis and enlargement of insurance industry. The sector was
widened homogenous enlargement after liberalisation but during last four years, contraction in business sales
or earnings is recorded. In 2005, private sector has opened many offices and LIC opened many in numbers
during 2009.

38. Jothi A. L. (December 2014)

After the privatisation of Indian insurance industry, exhaustive competitive environment came into live and
companies commenced selling manifold product mix to allure the customers and accomplish their needs and
clinch satisfaction through customer’s positive apprehension. The aim of this research study by is to
interrogate whether demographic characteristics have impress on the perception of customer towards the
quality of services performed by life insurance players.

A study conducted by Keerthi, P. and Vijayalakshmi, R. (2009)“A Study on the Expectations and
Perceptions of the Services in Private Life Insurance Companies” reveals that the policyholders’
expectations are well met in the case of certain factors reacting to service quality. But in the case of other
variables, there exists a significant gap which means that policyholders have experienced low levels of
service as against their expectations. According to Kunz (1997) ease in using the Internet as a means of
shopping positively impacted the consumer’s online shopping behavior. Product promotions attempt to
influence the consumers’ purchasing behavior. Blattberg & Wisniewsk, (1989) . Like other retail methods,
online channels have various promotional tools such as corporate logos, banners, pop-up messages, e-mail
messages, and textbased hyperlinks to web sites. These types of promotions have positively affected Internet
buying. Zhang, Jansen, and Chowdhury (2011) specified that businesses should have a brand presence on
many different social media sites to increase their consumer audience. “Research has shown that exposure to
electronic word of mouth (EWOM) messages can generate more interest in a product category than can

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exposure to information produced by marketers” Yasser Mahfooz, et al. (2013) , in their research articles
titled “A Study of the Services Quality issues of internet

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39 Ghosh Amlan (2011)

Inferred the relationship between life insurance sector reforms in India and the growth of life business in
post reform period. It shows that the relationship between the insurance sector reforms and development of
life insurance sector in India is bi-directional. It is due to huge potentiality of life insurance market.

40 [Link] Kumar and J Vimal Priyan(2012)

concluded that LIC continues to dominate insurance sector. Private sector insurance companies also tried to
increase their market share. Life insurance has today become a mainstay of any market economy since it
offers plenty of scope for garnering large sums of money for long periods of time. The study compared
premium, policies and market shares of companies.

41 Kalani, Salunkhe and Ahirrao (2013)

Examined claim settlement ratio of LIC with other insurance companies in India. Study observed that there
are cases of frauds in claim settlement that may happened but if the policyholder uses proper precautions he
will prevent himself from fraud. LIC of India provides better corporate services for settling the customers
claim. D-mat may improve transparency and efficiency of the claim settlement. Authors studied comparison
of claim settlement ratio of LIC with other life insurance industry and survey of policyholders and opinion
regarding claim settlement.

42 Yadav and Mohania (2013)

The study entitled claim settlement of life insurance policies in insurance services with special reference of
Life Insurance Corporation of India. Authors have focused on management framework o-f LIC for the
settlement; impacts of claim settlement on the sale of life insurance policies by LIC of India, claim
settlement process followed by LIC of India, awareness towards claim settlement among customers and
analyze quality of service provided by LIC of India for claim settlement

43 Piyali Chandra Khan and Mitra D(2014)

Analyzed that the overall position of LICI was found to be quite satisfactory as the profit after tax improved
by 270% in the last 12 years. It had strong liquidity position. The company had sufficient current assets to
meet the current liabilities. This resembles that LICI is quite capable to earn superior return in this
competitive environment.

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44 Sahu et al.(2009)

conducted a survey on 150 respondents to determine the attributes affecting buying behaviour of consumers ,
investment pattern in life insurance services and compare the differences in consumer perception of male
and female consumers. In their study they found that there 6 factors which affect the buying behaviour while
purchasing life insurance policies namely consumer loyalty, service quality, ease of procedures, satisfaction
level, company image and company client relationship. There is no difference between the perception of
male and female preferences

45 Manuel (2013)

He conducted the study to understand the Consumer Perception about life insurance policies in Kottayam
City .For this study the researcher used exploratory research design. This research was restricted to the
consumers of Kottayam city. The sample which was taken was of 50 respondents belonging to various age
groups. The survey was conducted to find out the attributes which affect decision making of consumers of
life insurance policies which are return on investment, company reputation, premium outflow, service
quality and product quality. The majority of respondents belong to age group of 19-28 years, male
consumers captures 74% of the market, dominant income group was 5001- 10000 and LIC had the major
stake.

46 Yadav and Tiwari(2012)

The study area is limited to Jabalpur district, of Madhya Pradesh and sample size of 150 policyholders is
taken and the sample have been selected through a stratified and purposive sampling method. The study has
been conducted to find out factors influencing customer investment decision, impact of various demographic
factors, preferences of customers while taking the decision, and ranking of factors responsible for the
selection life insurance as an investment option. The study was conducted on 150 respondents. in their study
on factors affecting customer investment in life insurance policies and found that age, gender, income level.
Out of 150 samples 54.6% of policy holders have invested in LIC followed by SBI life insurance amongst
private players. The features that policyholders consider while making a purchase can be ranked as follows:
company reputation, money back guarantee, risk coverage, low premium and easy access to agents as 1st,
2nd, 3rd, 4th and 5th respectively. Thus it could be concluded that goodwill of the company is the most
influencing factor while policy buying decision. It was found that majority of respondents preferred money
back policy. While studying the reason for purchase of insurance policy was most (54.6%) of the
respondent's have opted for LIC policies because of safety and rest of the respondent's opted for private
players for higher returns .The study area is limited to Jabalpur district, of Madhya Pradesh and sample size
is 150 policyholders of LIC and different private life insurers have been selected through a stratified and
purposive sampling method.

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47 Kaur and Negi (2010)

Conducted their study in Chandigarh and by using factor analysis they found customised and timely service,
brand USP, considerate employee, price immunity as major factors affecting the satisfaction of customers.
They even found that maximum life covered under insurance are of male than female and satisfaction level
among public and private sector insurance companies is same.

48 [Link] (2011)

Conducted a survey in Nigeria to find out factors enhancing the purchasing of life insurance and found that
company loyalty is the major factor influencing purchasing decision and company client relationship as the
last. These factors are beneficial to company as well as consumer.

49 Mahajan (2013)

Conducted a study on consumer decision making process in life insurance services and found that there are
5 stages i.e. need recognition, search of alternative, evaluation of alternative, purchase decision and post
purchase evaluation. Special considerations pertaining to insurance industry are perceived risk, risk and
standardisation and risk and information. She even formulated certain stages to improve customer awareness
about benefits of life insurance products like focusing on marketing techniques. Thus she concluded that the
consumer’s perception towards Life Insurance Policies is positive. There is a positivemind sets developed
for their investment pattern, in insurance policies. Still some actions need to be fordeveloping insurance
market.

50 Sandhu and Bala(2011)

The sample was taken of 450 respondents from different work places of 3 cities Jalandhar, Ludhiana and
Amritsar but out of 450 samples 337 respondents filled the questionnaire in all aspects. They conducted a
study in three cities of Punjab to find out factors affecting service quality of LIC. They used the factor
analysis technique and consequently found 7 factors composed of proficiency, media and presentations,
physical and ethical excellence, service delivery process and purpose, security and dynamic operation,
credibility and functionality. Along with these factors managerial implication like performance of agents
also affect customer satisfaction.

51 Singh et al. (2014)

Conducted a survey in Delhi NCR region to find out service quality of life insurance companies and effect
of demographic factors on consumer perception .they conducted the survey on 139 respondents and they

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found factors namely as responsiveness and assurance factor, convenience factor, tangible factor and
empathy factors. They even found that only age of respondent has significant impact on choice of insurance
product. Whereas various demographic factors such as gender, education, and annual income did not have
significant impact on choice of insurance product.

52 Alinvi and Babri(2007)

The study was specifically conducted on young consumers from 18-27 years .in their article tried to find
answer to question how could insurance company enhance their ability of constant changes in customer
preference in an increasingly competitive environment. In this theory they found income flow, age, family
size as significant determinant, information about product and services also affect consumer preference,
options of products and services i.e. customer choice along with time play important role. Through this study
it was concluded that price is a decisive factor for young customers of insurance services. We also concluded
that there exists unawareness among young people about the services provided by insurance companies, as
well as afraid of being fooled or tricked by telemarketers representing insurance companies. Thus they
demand more of information. While internet is their primary source of awareness but they prefer personal
contacts too while taking the decision. However, it was concluded that most respondents showed a tendency
to change their preferences over their lifetime, as their life circumstances would change.

53 Ahmed,et al (2007)

The secondary study was conducted based on SERVQUAL MODEL in Bangladesh and found that people
tend to invest more in private insurance companies due to better quality of services. Among private local and
foreign insurance clients prefer foreign private insurance companies due to experiences in operation and
wide area coverage. Companies must invest on building their reputation in order to reduce outflow of clients.
They even found that 25% of respondents have chosen their insurance company with influence of sales
personnel.

54 Rajavardhan and Jahangir (2015)

The sample has been taken from Nalgonda district with 120 respondents. In their article conducted a survey
on rural market of Telangana to find out socio demographic and economic variables that have impact on
decision of consumer perception. They found that gender and marital status have very low impact on
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perception. While education and income level have significant impact. Middle income group are more
engaged in insurance sector. Similarly an occupation also has significant impact on insurance. Moreover still
insurance is seen as tax saving and not an investment opportunity.

55 Jain andSaini (2012)

In their article has highlighted the role of IRDA for life in insurance industry in India and has concluded
that social, cultural, political, personal, psychological and demographic factors influence the consumer
behaviour. This study reveals that the demographical factor has the major impact on the purchasing decision
of consumer. The leadership does not lie in getting the maximum number of policies sold but in
understanding the demography of the customer and targeting them in their way. Finally, being they
considered the success of insurance marketing dependant on understanding the social and cultural needs of
the target population.

56 Singh (2014)

conducted a sample survey on 255 respondents of Uttar Pradesh to analyse life insurance consumer
behaviour. Main purpose for which the study was conducted was to assess the socio-economic status of
respondents and to examine the impact of status on insurance purchasing capacity. The study shows that
maximum people invest for the purpose of tax rebates and family safety. He found that major insurance
products be child plan and pension plan. He even found that maximum people like to get insurance product
directly from insurance agents followed by banks, financial institutions, and brokers. It was found that
government servicemen of 26-45 years of age buy more insurance products and middle income group
100000-300000 people buy more insurance policies.

57 Shamrao and Vibhute (2013)

conducted a survey in Kohlapur on 127 respondents to find out the preference of customers towards
insurance policy, the satisfaction level towards ULIP plan and traditional plans and the factors influencing
the investment decision. It was found that LIC to be major insurance player and traditional plans being more
preferred than ULIP plans. Majority of holders think insurance to be purely protection option followed by
tax savings and pension scheme. Majority of holders take policies from financial advisors and banks.
Investor opinion of investment also depend upon service quality, reputation, trust worthiness and future
plans of company. Kumar; the survey has been conducted by him on 200 respondents in Dehradun only. In
his survey he found that maximum investors are youth and there is gender biasness in investment pattern.
Married people and people residing in urban areas invest more in LIC. He even found that maximum people

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opted for yearly payment plans. Major portion of holders belongs to service sector and average middle class
people. Maximum people invested in LIC on basis of brand name and invest more in money back policies.

58 Venkaiah andSudhir (2013);

conducted a survey to find out the performance of private insurance players and took sample of 200
respondents. They found that very few respondents feel private companies to be better than public. The
services offered by private companies are as per expectation of customer and they feel no risk in investing in
private companies. Respondents want more policies with tax benefits among private companies.

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59 Mehr and Cammack (1976)

agrees that Insurance is usually thought of as a product that spreads the risk of serious, but low-probability,
losses among a group of individuals, thus providing some financial protection to each individual.
Kunreuther, (1979) said that his product makes good sense, particularly when the protection is purchased
against potential losses so large as to be catastrophic, such as total destruction of one's home, a large
accident liability judgment, or death of primary family breadwinner. However, it has long been recognized
that this sensible product is difficult to sell.

60 Kotler, (1973)

considers insurance to be in the category of "unsought goods," along with products such as preventive
dental services and burial [Link] notes that unsought goods pose special challenges to the marketer

61 Slovic, Fischhoff, Lichtenstein, Corrigan, and Combs (1977)

found that subjects were more likely to buy insurance against small, high-probability losses than insurance
against large, lowprobability losses, Hershey and Schoemaker (1980) reported the opposite result.

62 Kunreuther (1979)

“It is not the magnitude of a potential loss that inspires people to buy insurance voluntarily – it is the
frequency with which a loss is likely to occur

63 Kahneman & Tversky, (1979)

reported a risk-averse individual, therefore, should avoid nearly all types of risk. Empirical evidence,
however, suggests most people are risk averse for gains and risk seeking for losses.

64 Kahneman & Tversky, (1984)

stated indeed, repeated demonstrations have shown most people lack an adequate understanding of
probability and risk concepts Dhar, (1997) Greenleaf and Lehmann, (1995) Tversky and Shafir, (1992) have
shown that offering more options can generate decision conflict and preference uncertainty, leading to
decision deferral.

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65 Michael L. Smith (1982)

said that a typical life insurance contract provides a package of options or rights to the policy owner that is
not precisely duplicated by any other combination of commonly available contracts. Viewed from this
perspective, life insurance enjoys a unique position in the field of investments and should be judged in this
light. The paper shows that an options viewpoint provides a more complete explanation of policy owner
behavior towards life insurance than the conventional savings-and-protection view.

66 Michael L. Walden (1985)

told that the option's package view of the whole life insurance policy suggests that a whole life policy is a
package of options, each of which has value and is expected to influence the price of the policy. This
viewpoint implies the general hypothesis that price differences between whole life policies can be explained
by differences in policy contract provisions and differences in selected company characteristics. The option's
package theory was empirically investigated using regression analysis on data from a sample of policies
marketed in North Carolina. The results suggest support for the options package theory.

67 Kirchler and Angela-Christian Hubert (1999)

found that the present study aims at describing spouses’ relative dominance in decisions concerning
different forms of investment. As determinants of spouses’ dominance, partnership characteristics, such as
partnership role attitudes, marital satisfaction and individual expertise in relation to different investments,
were considered. A questionnaire on spouses’ dominance in making decisions on various investments, on the
characteristics of particular investments and on partnership characteristics was completed by 142 Austrian
couples. Basically, wives appeared to adapt to the dominance exerted by their husbands in savings and
investment decisions. Wives’ dominance was highest in egalitarian partnerships, where autonomic and wife-
dominated decisions were reported more frequently than in traditional partnerships. Additionally, spouses’
relative expertise in relation to the investments in question showed strong effects on dominance distribution:
Spouses with higher expertise than their partners exerted more dominance in decision-making processes.

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68 Amy Wong, (2004)

empirically examined the role of emotional satisfaction in service encounters. Specifically, this study seeks
to: investigate the relationship between emotional satisfaction and key concepts, such as service quality,
customer loyalty, and relationship quality, and clarify the role of emotional satisfaction in predicting
customer loyalty and relationship quality. In doing so, this study used the relationship between emotional
satisfaction, service quality, customer loyalty, and relationship quality as a context, as well as data from a
sample survey of 1,261 Australian retail customers concerning their evaluation of their shopping experiences
to address this issue. The results show that service quality is positively associated with emotional
satisfaction, which is positively associated with both customer loyalty and relationship quality. Further
investigations showed that customers' feelings of enjoyment serve as the best predictor of customer loyalty,
while feelings of happiness serve as the best predictor of relationship quality. The findings imply the need
for a service firm to strategically leverage on the key antecedents of customer loyalty and relationship
quality in its pursuit of customer retention and longterm profitability.

69 Stephen Diacon (2004)

presents the results of a detailed comparison of the perceptions by individual consumers and expert financial
advisers of the investment risk involved in various UK personal financial services' products. Factor
similarity tests show that there are significant differences between expert and lay investors in the way
financial risks are perceived. Financial experts are likely to be less loss averse than lay investors, but are
prone to affiliation bias (trusting providers and salesmen more than lay investors do), believe that the
products are less complex, and are less cynical and distrustful about the protection provided by the
regulators. The traditional response to the finding that experts and non-experts have different perceptions
and understandings about risk is to institute risk communication programmes designed to re-educate
consumers. However, this approach is unlikely to be successful in an environment where individual
consumers distrust regulators and other experts.

70 Helmut Gründl, Thomas Post, Roman Schulze, (2005)

found that demographic risk, i.e., the risk that life tables change in a nondeterministic way, is a serious
threat to the financial stability of an insurance company having underwritten life insurance and annuity
business. The inverse influence of changes in mortality laws on the market value of life insurance and
annuity liabilities creates natural hedging opportunities.

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71 Evan Mills, Ph.D.(1999)

Studied the insurance industry is rarely thought of as having much concern about energy issues. However,
the historical involvement by insurers and allied industries in the development and deployment of familiar
technologies such as automobile air bags, fire prevention/suppression systems, and anti-theft devices, shows
that this industry has a long history of utilizing technology to improve safety and otherwise reduce the
likelihood of losses for which they would otherwise have to pay. We have identified nearly 80 examples of
energy-efficient and renewable energy technologies that offer “loss-prevention” benefits, and have mapped
these opportunities onto the appropriate segments of the very diverse insurance sector (life, health, property,
liability, business interruption, etc.). Some insurers and risk managers are beginning to recognize these
previously "hidden" benefits.

72 Roger. A. Formisano (1981)

examined, via consumer interviews, the impact of the National Association of Insurance Commissioner's
Model Life Insurance Solicitation Regulation as implemented in New Jersey. A substantial portion of the
insurance buyers sampled did not become aware of the provisions of the regulation aimed to improve their
buying ability. Further, many life insurance buyers were not well informed concerning the nature and
operation of life insurance contracts, and in particular, the life insurance policies that they had purchased.

The literature offers various definitions of this concept, following two main proposals, those of Oliver
(1980) and Parasuraman et al. (1988).

In the early 1980s, Oliver defined the expectation-disconfirmation paradigm, stating that “expectations are
consumer-defined probabilities of the occurrence of positive and negative events if the consumer engages in
some behavior” (Oliver, 1981). In contrast, the gap-based service-quality model developed by Parasuraman
et al. (1988) defines expectations in terms of what customers feel they should be offered. The former has
been restated as “predictive expectations” and the latter as “desired expectations” (Yi, 1990).

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Today, conceptualizations of expectations generally fall within one or the other line of thinking. However,
the lines share certain features: (1) they recognize that expectations are the result of an individual, and (2)
they entail awaiting a given result. In this regard, Zeithaml et al. (1993) found that consumer expectations
are pretrial beliefs about a given product that serve as a standard or reference point against which to judge its
performance. Spreng et al. (1996) defined them as “beliefs about a product’s attributes or performance at
some time in the future.” In contrast, for Wu et al. (2014) they are “generalized beliefs that individuals have
about a social object.” Finally, Kujala et al. (2017) have noted that expectations determine what an
individual expects to receive from a service and that they, in turn, are conditioned by the desires and level of
abstraction the individual achieves during the evaluation process.

In the online environment, the above definitions are fully valid. However, in addition to considering the
psychological nature of expectations, the influence of technology on the quality, performance, or
experiences individuals receive both while consuming the service and during the purchasing process must
also be considered (De Keyser and Lariviere, 2014).

Traditionally, expectation research in the field of services has consistently referred to quality, since
customers’ main objective is for the service they intend to purchase to meet certain quality standards
(Parasuraman et al., 1988; Alén and Rodríguez, 2004). With online services, technology is key to quality;
therefore, characteristics such as ease of use, the quantity and timeliness of the information provided, or the
speed, precision and security with which it enables completion of the process, among others, have all been
identified as dimensions of service quality (Zavareh et al., 2012). However, expectations may also be related
to how or what an individual might feel when consuming the service (Koenig-Lewis and Palmer, 2014).
While many of these feelings and emotions develop from the purchasing and consumption process itself,
others are the result of the characteristics of the environment in which these processes take place (Nakamura
and Csikszentmihalyi, 2014).

In this regard, technology once again plays an essential role, since it can generate flow experiences in
subjects that leave them both deeply involved in an enjoyable activity and emotionally absorbed (Ozkara et
al., 2016). However, although technology influences the expectation formation process, it is the individual
who ultimately carries the process out. Hence, internal factors related to how individuals perceive the brand,
their experience with it, their personal characteristics, and the third-party recommendations they receive
directly influence the expected future service outcome (Oliver, 1977, 1980; Cadotte et al., 1987; Oliver and
Burke, 1999; Andreassen, 2000; Torres Moraga, 2010; Duque-Oliva and Mercado-Barboza, 2011; all cited
in Pelegrín-Borondo et al., 2016).

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Understanding what drives an individual to use technology has been one of the chief concerns among
management scholars and professionals. A great deal of the literature has focused on comparing the
predictive capacity of the different theories on technology adoption and use. Many of these studies, such
as Gounaris and Koritos’s (2008) study on the adoption of online banking, have shown that incorporating
concepts from various theoretical frameworks increases a model’s explanatory power.
Most of the theoretical developments have been based on the Theory of Reasoned Action (TRA),
formulated by Ajzen and Fishbein between 1975 and 1980. This theory holds that individual behavior
depends on intentions, which, in turn, depend on attitude and social pressure (subjective norm) to engage in
the behavior (Montano and Kasprzyk, 2015). Thus, any other factor that might influence behavior does so
only indirectly. In the 1980s, the TRA was widely used. Its great explanatory power and consistency with
other studies made it suitable to predict a broad set of behaviors (Davis et al., 1989). Indeed, such was the
TRA model’s importance that it was the basis for two subsequent lines of work: the Theory of Planned
Behavior (TPB) and the Technology Acceptance Model (TAM). Both lines corroborate the role of individual
intentions as triggers of individual behavior.
Sampedro et al. (2014) have argued that the TPB offers a general model that explains individual conduct
based on the beliefs-attitude-intention-behavior relationship. The intention to act is considered the best
indicator of the behavior, since it is indicative of the effort the individual is willing to make to perform a
given action. The model is completed with the inclusion of three exogenous variables that explain the
behavioral intention: attitude toward the behavior, subjective norm, and perceived control in the behavior.
Meanwhile, the TAM is perhaps the model to receive the most attention in academia. Developed by Davis
(1989) and Davis et al. (1992), the TAM is an adaptation of the TRA model that focuses on the behavior of
new technology use.
Analytically simplifying the previous models, the TAM places special emphasis on analyzing the factors
affecting individual attitudes and intentions. Hence, it proposes that the decision to use a technology is based
on its degree of functionality and the characteristics of the interface (Yucel and Gulbahar, 2013). In
particular, the TAM predicts that the use of ICT is conditioned by two specific individual beliefs about
technology: (1) perceived usefulness (PU), and (2) perceived ease of use (PEOU).

Perceived usefulness was first introduced as a factor in the TAM model. Subsequently, Venkatesh et al.
(2003) included it as part of the concept of performance expectancy. Davis (1989) defined it as “the degree
to which a person believes that using a particular system would enhance his or her job performance.”
Individuals thus generate this perception by assessing whether a new system offering additional features
would enhance their performance compared to that achieved with a system previously used to carry out the
same function or even before using any system at all. Perceived usefulness can thus be considered extrinsic
to the technology itself, related instead to efficiency and effectiveness in the performance of an activity and
to expectation formation.

Perceived ease of use is also part of the TAM and refers to “the degree to which a person believes that using
a particular system would be free of effort” (Davis, 1989). This concept was introduced in the Innovation
Diffusion Theory (IDT), but in the opposite sense, in terms of complexity (Rogers, 1962; Moore and
Benbasat, 1996). Subsequently, Venkatesh et al. (2003) conceptualized the idea as the construct effort
expectancy.

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This factor is relevant to the adoption of a system, because systems that are easy to use require a smaller
effort on the part of the user, thereby allowing him or her to allocate more resources to other activities, since
effort is a finite resource (Radner and Rothschild, 1975). In this regard, Davis (1989) holds that a system that
is easy to use will generate a more positive attitude in the user toward using it. Furthermore, like perceived
usefulness, PEOU is subjective in nature and, thus, can vary from one individual to the next in relation to the
same system. The perception will be different depending on the user’s knowledge or prior experience with
similar systems. Finally, PEOU can also vary over time. As users become more proficient in the use of a
system, they may begin to perceive it as increasingly easy to use (Martins et al., 2014). In light of these
considerations, the following hypothesis was formulated.

In general, the TAM is the most widely applied theoretical system in the field of information systems.
Because of this widespread use, it is considered a well-established and robust theory (Svendsen et al.,
2013; Yucel and Gulbahar, 2013).

However, over time, certain aspects of the TAM, related to its definition, design, and direction of
implementation, have proven limited. Baron and Ensley (2006) identified important problems in the model,
related to the definition of its key constructs. Similarly, Venkatesh et al. (2003, 2012) and Bagozzi
(2007)have highlighted the need to increase the model’s explanatory power by including additional variables
and even the need for a paradigm shift in this regard. In other fields, authors such as Goh et al. (2016) have
also underscored the need to increase the model’s explanatory power through the inclusion of additional
variables.

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73 Dr. Ashfaque Ahmed (2013)

in his study “perception of life insurance policies in rural India” reveled that there is low level of awareness
and understanding of life insurance products. There are various factors that influence consumer thinking
when they are planning to invest in insurance scheme. Most of the customers show their interest in life
insurance having higher risk coverage and also for good return with safety. The roles played in perception of
life insurance policies in rural market by members of the family varies with knowledge parameters as well as
with the typed of products and sometimes with the company name also. While a number of psychological
variables are useful in obtaining into consumer‟s perception towards buying life insurance policies in rural
areas. The insurance company name also plays an important role in purchasing.

74 Basha, Kumar and Rao (2012)

studied the policyholders‟ perception towards LIC of India by conducting a survey in urban and semi-urban
centers. Chi-square test was used to test the hypothesis. It was found that majority of them were influenced
by agent‟s opinion of a policy, significant number felt that premium is high, majority preferred money back
policy and the policyholder expected a return of 11- 15 percent from their investments.

75 Ghorpade and Deshmukh (2012)

analyzed the customer perception, purchase behavior and consumer awareness regarding the life insurance
industry. Primary data was collected from 500 respondents in Pune city that was analyzed through rank
correlation and chi-square test. It was found that only 5.6% purchased the policy as a risk cover, while the
remaining for tax purpose and/or investment purpose. LIC was the preferred insurance company. Among the
private players ICICI Prudential was the most preferred company followed by HDFC Standard Life and
together they accounted for nearly half the share in premium collection. Customer preference for a particular
company was based on returns, premium, awareness campaign by company, product mix and advertisement.
They concluded by laying emphasis on quality, accessibility and promptness of service.

76 Narayan. H. Jai (2009)

In an article has made an emphasis on importance of customer in the business of insurance. He explained in
phase of growing market competition, there is an intense need to go beyond mere efficiency in designing
products. To understand the customer‟s needs and to convey what they have to offer would perhaps bring in
higher efficiencies in customer service. Insurance business revolves around the customer and fair treatment
to customers is need of an hour to win their loyalty and trust. In a service based organizations, customer
service is the most dominating feature that differentiate and gives good return to the insurers. Proper dealing
with customer complaints, effective customer grievances handling mechanism and fast claim settlement
procedure are some of the ways through which satisfaction level of customers can be increased. Hence to
serve the customers promptly and effectively is the key success of a life insurance business

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77 Athma P. & Kumar R. (2007)

In the research paper titled “an explorative study of life insurance purchase decision making: influence of
product and non-product factors". The empirical based study conducted on 200 sample size comprising of
both rural and urban market. The various product and non-product related factors have been identified and
their impact on life insurance purchase decision-making has been analyzed. Based on the survey analysis;
urban market is more influenced with product based factors like risk coverage, tax benefits, return etc.
Whereas rural population is influenced with non-product related factors such as: credibility of agent,
company‟s reputation, trust, customer services. Company goodwill and money back guarantee attracts many
people for life insurance.

78 Athma. P and kumar. R (2007)

In the research paper titled “an explorative study of life insurance purchase decision making: influence of
product and non-product factors". The empirical based study conducted on 200 sample size comprising of
both rural and urban market. The various product and non-product related factors have been identified and
their impact on life insurance purchase decision-making has been analyzed. Based on the survey analysis;
urban market is more influenced with product based factors like risk coverage, tax benefits, return etc.
Whereas rural population is influenced with non-product related factors such as: credibility of agent,
company‟s reputation, trust, customer services. Company goodwill and money back guarantee attracts many
people for life insurance. Girish kumar and eldhose (2008), published in insurance chronicle icfai monthly
magazine august 2008 in their paper titled "customer perception on life insurance services: a comparative
study of public and private sectors", well explained the importance of quality services and its significance in
raising customer satisfaction level. A comparative study of public and private sectors help in understanding
the customer perception, satisfaction and awareness on various life insurance services. Narayan. H. Jai
(2009), in an article has made an emphasis on importance of customer in the business of insurance. He
explained in phase of growing market competition, there is an intense need to go beyond mere efficiency in
designing products. To understand the customer‟s needs and to convey what they have to offer would
perhaps bring in higher efficiencies in customer service. Insurance business revolves around the customer
and fair treatment to customers is need of an hour to win their loyalty and trust. In a service based
organizations, customer service is the most dominating feature that differentiate and gives good return to the
insurers. Proper dealing with customer complaints, effective customer grievances handling mechanism and
fast claim settlement procedure are some of the ways through which satisfaction level of customers can be
increased. Hence to serve the customers promptly and effectively is the key success of a life insurance
business

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79 Uma, Selvanayaki & Shankar (2011)

based their article titled „A Survey of Life Insurance Customer‟s Awareness, Perception and Preferences‟
on the survey of 100 customers of life Insurance policies, carried out in Coimbatore. It throws light on
various aspects related to customers' awareness, perception and preferences pertaining to life insurance. The
primary objectives of this survey were to find preferences of customer‟s towards various life Insurance
policies, factors influencing choice of life Insurance policy and awareness about life Insurance brands.
Tripathi (2009) in his dissertation report on „A comparative analysis of LIC and Private Insurance
Companies‟ says that the main objective of the study is to compare the performance of LIC and private life
insurance companies. The study was analytical and based on secondary data sources. Comparison between
LIC and private insurers has been done on the basis of size, growth, productivity and grievances handling
mechanism

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CHAPTER 4: DATA INTERPRETATION

Data interpretation refers to the implementation of processes through which data is reviewed
for the purpose of arriving at an informed conclusion. The interpretation of data assigns a
meaning to the information analyzed and determines its signification and implications.
The importance of data interpretation is evident and this is why it needs to be done properly.
Data is very likely to arrive from multiple sources and has a tendency to enter the analysis
process with haphazard ordering. Data analysis tends to be extremely subjective. That is to
say, the nature and goal of interpretation will vary from business to business, likely
correlating to the type of data being analyzed. While there are several different types of
processes that are implemented based on individual data nature, the two broadest and most
common categories are ―quantitative analysis‖ and ―qualitative analysis‖.

Yet, before any serious data interpretation inquiry can begin, it should be understood that
visual presentations of data findings are irrelevant unless a sound decision is made regarding
scales of measurement. Before any serious data analysis can begin, the scale of measurement
must be decided for the data as this will have a long-term impact on data interpretation ROI

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1. Age group
The respondents were asked about their age. Following are the responses

Age Group Number of

respondents
1-10 2

11-20 42

21-40 53

41-60 3

Interpretation

1 2 % of respondents belong to the age roup of 1 – 10

2 42% of respondents belong to the age group of 11-20
3 53% of the respondents belong to the age group of 21-40
4 3% of the respondents belong to the age group of 41-60

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2. Gender

The respondents were asked about their gender. Following are the responses

particulars No of respondents

male 46

female 54

Interpretation :-

According to the survey conducted, it is found that:

1 54% of respondents are female

2 46% of respondents are male

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3 QUALIFICATION

particulars No of respondents

Non graduate 45

graduate 40

Post graduate 15

Interpretation :-

1 45% of the respondents are under non graduate

2 40% of the people are graduate

3 15% of the respondents are post graduate

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4 Annual income

particulars No of respondents

Less than 300000 37.4

300000-600000 27.3

600000-1000000 20.2

1000000 and above 15.2

Interpretation :-

1 37.4 % of the respondents are in the income level 300000

2 27.3% of the respondents are in the income level 300000-600000

3 20.2% of the respondents are in the income level 600000-1000000

5 15.2% of the respondents are in the income level 1000000 and above

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5 Why would you opt for online insurance policies

particulars no of respondents

Time saving 32.7

Less expensive 28.7

Easier to apply for 38.6

Interpretation :-

1 32% of respondents opt because it is easier to apply for

2 29% of respondents opt because it is cheap
3 39% of respondents opt because it is saving

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6 What reasons are you worried about while buying insurance online?
particulars No of respondents

Account could be hacked 32.7

Incomplete knowledge about the 37.6

policies

Buying wrong type of insurance 29.7

Interpretation

1 32.7 % of the respondents feel that their account could be hacked

2 37.6% of the respondents feel that their incomplete knowledge about policies could make them
worried
3 29.7 % of the respondents feel that buying wrond type of insurance could be a problem

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7 Is it difficult to buy insurance policies online ?

particulars No of respondents

yes 25.7

no 36.6

Depends on buyers knowledge 37.6

Interpretation

1 26 % of the respondents believe buying insurance online is difficult

2 37% of the respondents believe that buying insurance online is not difficult
3 37% of the respondents believe that buying insurance online depends upon the buyers knowledge
about the policies

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What are the disadvantages of buying insurance policies online

particulars No of respondents
lack of knowledge about the policies 52.5
Security threats through hackers 29.7
You need access to internet 17.8

Interpretation

1 52.5% of the respondents feel it is disadvantageous because of lack of information about the policies
2 29.7% of the respondents feel that it is disadvantageous because of security threats through hackers
3 17.8% respondents feel that it is disadvantageous because you need access to internet

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Whose assistance do you take while buying insurance policies online?

particulars No of respondents
friends 19
Family members 33
Information from internet 19
Consulting insurance agents 29

Interpretation

1 19% of the respondents take assistance from friends

2 33% of the respondents take assistance from family members
3 19% of the respondents take assistance from the internet sites
4 29% of the respondents take assistance from consulting insurance agents

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Do you think buying insurance online is better as you don't have to pay commission to agents?

particulars No of respondents
yes 54.5
no 18.8
May be 26.7

Interpretation

1 55% of the people feel buying insurance is better online as you don’t have to pay commission
2 18% of the people don’t feel it is beneficial
3 27% of the people believe on it depending upon the situation

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What changes would you like to make to the experience of buying insurance policies online?

particulars No of respondents
Personal information provided should be secured 57.4
Site should be well protected from hackers 20.8
Should provide detailed information about policies in 21.8
simple words

Interpretation

1 57% of the respondents feel information provided should be secured with them and not subjected to
leaking
2 21% of the respondents feel that the site should be well protected
3 22% of the respondents feel the site should provide detailed information in simple words

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Is buying insurance policies online better as you don't have to buy policies as per the prefarances of
agents

particulars no of respondents
yes 46.5
no 19.8
neutral 33.7

Interpretation

1 47% of the respondents believe in buying it online

2 20% of the respondents do not believe in buying it online
3 33% of the respondents are neutral about the situation

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Do you think buying online insurance is time saving as well as cheaper

particulars No of respondents
yes 66.3
no 12.9
maybe 20.8

Interpretation

1 66% of the respondents believe it is cheaper as well as time saver

2 13% of the respondents don’t believe it is cheaper as well as time saver
3 21% of the people are neutral above it

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What things do you look for while buying insurance policies online?

particulars no of respondents
Time period 40.6
Coverage it provides 32.7
Its premium amount 13.9
Goodwill of the company 12.9

Interpretation

1 41% of the respondents look for time period of the policy

2 32% of the respondents look for the coverage it provides
3 14% of the respondents look for its premium amount
4 13% of the respondents look for goodwill of the company

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Do you think online insurance is the future for insurance industry in India

particulars No of respondents
yes 63.4
no 9.9
maybe 26.7

Interpretation

1 63% of the respondents believe online insurance is the future of insurance industry in India
2 10% of the respondents believe online insurance is not the future of insurance industry in India
3 27% of the respondents are neutral about the situation

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CHAPTER 5.

FINDINGS

The study came out with interesting findings, they were as follows

1 The respondents of age group 30-49 were found to be maximum in these study
with36%.degree/diploma holders were found to be at maximum number in this study (39%).maximum
respondents are working for the private sector organization (43%).Also it is found that maximum number
of the respondents were in the income range of 2.5 lakhs to 5 lakhs(45%).

2 That is, from the analysis, it is concluded to be a close relationship between the variables such as
age, marital status, income, qualification, employment and level of satisfaction regarding the online
insurance consumers.
3 It is understood from the study that respondents give more priority for the information availability
through websites and brochures for knowledge and instant decision making.

4 Need to comply with IRDA guidelines and the application of insurance laws for fair business
practices are the next major preference of the respondents in insurance business. Reliability &
Security of services rendered was also the very important area to positively engage online insurance
transaction with companies.

Suggestions

1 The study prefer to offer the following suggestions, Companies must provide frequent updates of their
online insurance services to customers

2 The procedure for usage of online transaction must be in simple mode

3 The processing speed should be increased for fast use of all services

4 The pages setup and procedure for registration should be simple

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It is important to understand if the instrument used for the research is valid and reliable when it has been
modified for the research, and wordings of the original scale items have been changed. Exploratory Factor
Analysis was run on the 21 items to examine the dimensionality of online insurance scale and to construct a
measurement model. Table 1 represents the results of the Exploratory Factor Analysis with Varimax rotation
and reliability scores. The analysis revealed two factors, and seven items were excluded as the factor
loadings were <0.5 and failed to meet Nunnally'srecommended level of internal consistency for a scale
development. These were considered unsuitable for further analysis. The items eliminated were: ‘I am
satisfied with technological convenience of insurance companies’ Web sites, I am aware of various options
for accessing and using the online insurance services, Making insurance online will complicate transactions,
I feel online services involve additional charges, I feel security measures of big companies are better, It is
safe to use online services from anywhere, and Online insurance will finish the human touch’.

The first factor was termed ‘technology-related’ and it taps technology and Web site related issues of online
insurance. The second factor named ‘service/relationship’ taps items related to use of online insurance
services.

The total items for the Technology Factor and Service/Relationship Factor (after Factor Analysis) were
seven each. 78.8 per cent people were aware of the benefits of online insurance services. Table 2  shows the
different age groups of the respondents.

Table 3 shows the results of Pearson correlations between customers’ preference for using online insurance
with the online insurance attributes of technology and service. A strong positive correlation
(r=0.639, P=0.000) exists between the customers’ preference for using online insurance with Web site's
technological attributes. There is no correlation between service attributes and preference to use online
insurance services.

For the technological attributes of online insurance Web site, the P value is significant at 0.01 levels, which
show that customers look for technological convenience for using insurance company Web sites. The
reasons are related ease of accessibility and flexibility in operating it. While using online services, the Web
site design, layout, features and navigability affect the customers’ satisfaction. In insurance sector, customers
are more accustomed to discussing the insurance plans with their insurance agents and contacting them for
renewal and payments. The risk and lack of knowledge about insurance services make customers dependent
on the service staff. Online insurance would transform service distribution and enable customers to use
online medium for examining various product options, comparing schemes and payment modes. The results
are in line with earlier researches, which posit that customers’ use and satisfaction with technology is related
to attributes such as information content, customization, reliability, perceived ease of use and usefulness of
the Web sites. The Web site features should facilitate convenient transactions and provide information that is
easy to [Link] technical aspects of the online insurance services should be appropriately addressed
as it would affect the service satisfaction and encourage customers to use it. Jahng et al state that e-
commerce sites are primarily considered as information disseminating systems and if the information
provided is complete, and addresses all the customer queries, customers’ use of the service would increase.
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Thus, Hypothesis 1 gets accepted but Hypothesis 2 gets rejected. The Indian customers’ behavior toward
insurance company Web sites is more governed by its technical features. The technical features and
instructions of the Web site should be easy to follow. Customers feel afraid to use the Web sites because the
Web pages do not upload easily, hyperlinks do not work and there is no assurance that the financial
transaction has been completed.

To understand whether the customers’ use of online insurance services was dependent upon age, ANOVA
test was run. The results show (Table 4) that age of the customer does not affect customers’ attitude toward
online insurance with respect to the technological attributes of the Web site. There is no significant
difference between the age groups (F=0.926; 190 and P=0.450). However, for the service attributes, there
was significant difference between the five age groups (F=5.495; P=0.000; significant at 0.01 level). The
customers’ online insurance service expectations differed across the different age categories.

Online service attributes are important component of online customer shopping behavior. Our research
findings support earlier researches on online shopping that service convenience,information about product
and services and easy transactioncan improve customers’ attitude toward online insurance services.
Customer evaluates the online service based on the timeliness81 and promptness with which customers’
queries and needs are handled. The insurance policies are related to investment plans and older customers
prefer to understand insurance policies before taking a decision. Hypothesis 3 gets accepted as customers’
attitude toward service attributes of online insurance varied significantly across age categories. The Post-hoc
test was administered on the service attributes to decipher the affect of age variable on the online insurance
customer shopping behavior (Table 5).

The differences are primarily between the age groups 35–45 years and 46–55 years with 18–25 year old
customers. The younger generation is likely to be comfortable with online insurance Web sites. They are
more familiar with Internet and find it easy to explore the various services through Internet. Bucklin and
Sismeiro9 posit that customers’ search behavior varies with their use, experience and familiarity. The older
generation is not comfortable with Internet, thus they avoid online insurance Web sites. Our research
supports the research of Sorce et al, which states that older customers have to be enticed to use Internet.
They do not know what to expect from the online Web sites, thus for them the alternatives are few and may
find the physical presence of the insurance agents more assuring than the ‘virtual entity’ of insurance firm.

The personal interaction with the insurance staff helps older customers in understanding the features of the
policies, interest rates, lock-in period and benefits. This behavior is more apparent among older people as
they are more attuned to the traditional systems. The technology-based service model does not interest them.
They are afraid that they would be unable to understand it. This is aggravated as online medium is faceless
system. The service attributes combine relationship aspect, which makes customers assured about the
transaction. In online insurance, the assurance of face-to-face transaction is missing. The customers’ queries
and problems may not be appropriately tackled through online insurance services. The results are in tandem
with the research of Meuter et al wherein they state that customers who have a direct experience with the
Web site are comfortable using it. The opinion and behavior of users and non-users differs significantly. The
younger generation is Internet savvy, thus browsing and exploring the online service is easier for them.

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Multiple regression analysis was conducted to investigate the best predictors of attitude toward online
insurance (Table 6). Regression Analysis shows that customers would be affected by technological attributes
of online insurance Web sites. The P=0.000 (significant at 0.01 levels) for technology attribute significantly
predicts the dependent variable, that is customers’ use of the online insurance services. This shows that
improvement in technical attributes of the Web site would have a positive impact on customers’ online
insurance service behavior.

The technical aspects relate to easy navigability,less loading time of Web pages,83, 84proper instructions on
the Web sites and hyper links that work. Inadequate technology infrastructure leads to lost sales. The online
Web site features should assist in financial [Link] the technical features are difficult to operate and
use, the customer would feel unsure of the service. The research supports earlier researches where Web sites
usability were related and evaluated by the dimensions of content, layout and ease of [Link] Web sites
features should convey reliability, assurance, tangibility, responsiveness and credibility. These are the
service quality dimensions that were discussed and researched by Parasuraman et al We feel that for
motivating customers to use online insurance services the technical aspects of the Web site should be
addressed. The Indian customers still feel a sense of inhibition in trying out innovative services. However, if
they are assured about its benefits and usability; their acceptance would increase.

The use of online insurance varies among customers according to their perceptions about its features and
benefits. Parasuraman88 states that experienced online shoppers are less anxious about computers usage and
are technology-savvy, and innovative. Communication plays a pivotal role in informing the customer about
the varied service features of the Web sites. Doll et al81 posit that customers give priority to Web sites that
are responsive, display accurate information and are easy to understand. For people not conversant with
Internet-based models, online retailing poses a major challenge. Easy operational features would bestow
confidence to the customers and they would be willing to use it. The online insurance service Web sites
should not overload customers with too much information. Information should be customized according to
customer requirements. Too much instructions and information on Web site may make the customers wary
about trying the Web site for transactions.

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CONCLUSION

Undoubtedly on-line insurance is a strong catalyst for the economic development and in order to enhance the
propensity to use online insurance as a primary channel, it must be tailored suiting to the need of the
customer. As more and more customers adopt the internet for their insurance transactions. It becomes
important for management of insurance companies to be innovative in their approach to meet customer
requirements.

The research was conducted only in the city of Allahabad, which may not be considered to be an adequate
description of the total Indian customers’ online insurance purchase behavior. The reason for selecting a
non-metropolitan city was to understand a non-metropolitan customers’ behavior toward online services. In
metropolitan cities, the Internet connectivity and communication networks are better; therefore people may
be more willing to use online services. In smaller cities, there are frequent communication network
disruptions, which make customers skeptical about online services. One of the limitations of the study is
over representation of female population in the sample. The findings may differ if there were more number
of males in the sample.

The data were collected through convenience sampling, by asking people if they were conversant with
Internet usage and familiar with online insurance services and its benefits. The findings may differ from the
customers’ behavior in metropolitan cities. As the customers in bigger cities are exposed to advanced
systems and technologies, the expectation and behavioral patterns may differ from customers of smaller
cities.

The perceptions are of people who were aware of online insurance services (users and non-users). The
research provides an idea about the customers’ online purchase behavior for financial services, which may
be used to modify and customize the Web site features. In small cities of India, people are adopting latest
technologies for services, and online insurance service has a potential for growth.

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BIBLIOGRAPHY

1 [Link]

2 [Link]

3[Link]
ns_on_Life_and_Medical_Insurance

4 [Link]

5 [Link]

6 [Link]

7 [Link]

8 [Link]
hindrance-to-online-insurance-buying-aviva-imrb-study/articleshow/[Link]?from=mdr

9[Link]
RS_PREFERENCE_TOWARDS_INVESTMENT_IN_LIFE_INSURANCE_POLICIES

10[Link]
_in_India

ANNEXURE
1 Name of the respondent

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2 age group

1-10
11-20
21-40
41-60

3 gender
Male
Female

4 qualification

Non graduate
Graduate
Post graduate

5 annual income

Less than 300000

300000-600000
600000-1000000
Above 1000000

6 Why would you opt for online insurance policies

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 Perspective of individuals towards online insurance

Easier process to apply for

It is less expensive

It is time saving

7 what reasons are you worried about while buying insurance online

Account could be hacked

Incomplete knowledge about the policies

Buying wrong type of insurance

8 is it difficult to buy insurance policies online

Yes

No

Depends upon the knowledge about the policies

9 what are the disadvantages of buying insurance policies online

Lack of knowledge about the policies

There is a security threat through hackers

You need to have access to internet

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10 whose assistance do you take while buying insurance policies online

Friends

Family members

Information through internet

Consulting insurance agents

11 do you think buying insurance online is better as you don’t have to pay commission to agents

Yes

No

Maybe

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12 what changes would you like to make to the experience of buying insurance policies online

Personal information provided should be secured with them

Site should be well protected from hackers

They should provide detailed information about policies in simple words

13 is buying insurance policies online better as you don’t have to buy policies as per the prefarances of the
agents

Yes

No

Neutral

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14 Do you think buying insurance online is time saving as well as cheaper

Yes

No

Maybe

15 what things do you look for while buying insurance policies online

Time period

Coverage it provides

Its premium amount

Goodwill of the insurance company

16 do you think online insurance is the future for insurance industry in india

Yes

No

Maybe

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