Customer Perception Towards Customer Relationship Management in Life Insurance Companies: A Factorial Analysis

Abstract

In the post liberalization period, the life insurance industry of India witnessed a remarkable growth and it is being forced to face a lot of healthy competition from many domestic as well as international private insurance players. Life Insurance is critical for the development of Indian economy. This present paper examines the various variables influencing consumer satisfaction as regards to performance of Life insurance companies. In this process, the factoral relationship exist among the variables have also been examined during the process of study. Thus, the primary purpose of factor analysis is to discover the pattern of impact among the variables on customer satisfaction. In particular, it seeks to discover if the observed variables can be explained largely or entirely in terms of a smaller number of variables called factors. ‘Customer satisfaction’ is a term which is a subjective term and varies from one to other. Against such a backdrop, an attempt has been made to study the present practices practiced in the life insurance sector and their applicability in service delivery process. The questionnaire framed for the purpose of undertaking a survey of insurance policy holders comprised of five sets of factors, which fluence Customer satisfaction and Customer Relationship Management and the level of satisfaction. In this connection eighteen questions were asked to the sample respondents and the responses were grouped under five suitable factors namely, service drivers in Customer Relationship Management, Information Technology, Customer Orientation and Wide Area Network Coverage by the insurance agents and insurer.

The Objectives of the Study was to analyse the factor wise significance to the Customer Satisfaction and to provide suggestion to improve the performance of life insurance business in India with two hypotheses. The methodology for the research was setup descriptive and analytical and the data was collected from 800 sample , where 622 were valid and these data were analyzed through facto analysis. The study findings are Service is performed at right time in Customer Relationship Management (CRM), Recommending the Company plans to friends and relatives in Modes of payments are easier and faster and Online facility provides adequate information & provides easy access in Information Technology(IT), Employees provide information time to time for new products in Customer Orientation(CO) and Easy payment through wide area network by Agents in Wide Area Network Coverage as these values of these factors holds a good fit to their responding factors. the strategic suggestion for the development and growth of the life insurance business have been outlined from the present research as : the companies must adopt Customer oriented Plan coverage through advisors , Easy settlement through wide area network by Agents/Officers, arrangement of more number of workshops/seminars for customer orientation, their employees must be instructed to maintain a good linkage with the present customers, Staff should provide prompt service to their customers, staff should behave properly and take more attention to customer grievances and the modes of settlements are faster and easier with providing best quality products for its customers through the process of reengineering to sustain in the competitive market.