Consumer Buying Behaviour towards Life Insurance Products in Rural Market A Case Study of Nalgonda District, Telangana State

P Rajavardhan Reddy; Dr. Y Jahangir

Volume : IV, Issue : III, March - 2015

Consumer Buying Behaviour towards Life Insurance Products in Rural Market A Case Study of Nalgonda District, Telangana State

P Rajavardhan Reddy, Dr. Y Jahangir

Abstract :

India is a nation where the purchase of Life insurance products is still less than industrialized countries. This has led to a significant unfamiliar prospective of life insurance in India. Number public and private providers offering life insurance products, one continues to surprise why the majority of Indians does not have any life insurance policy. This resulted into discover what factors play very important role in purchase of life insurance policies. The objectives of the study were to evaluate the factors influencing consumer perception, attitude towards life insurance and to evaluate levels of awareness among different demographic variables groups of customers. Total 200 sample respondents used for this study; item to total correlation was applied to check the consistency of the questionnaire. The measures were standardized through computation of reliability and validity tests. Factor analysis was applied to identify the underlying factors. SMART PLS (Partial least squares) model was applied to find out the relationship between perception, attitude, and awareness levels of the customers and purchase intention. The findings of this study provide important insights to the insurance companies in designing their product–mix. Therefore, consumers who intend to buy the insurance products will have a list of factors and thus can take an informed decision in selecting an insurance product. The study will also assist in improving the market share of companies and further help in the development of the insurance sector. The recommendations are that the insurance companies should concentrate on consumers� security features, information, marketing activities and process.