Factors Influencing Service Quality Perception in Indian Life Insurance Sector

Abstract

Abstract

The Indian insurance industry has gone through major transformations over the past two decades and life insurance sector has been no exception to it. With the introduction of privatization and the increase in number of insurance providers, the competition has risen unprecedentedly. To survive this immense competition, the companies have come up with numerous products and solutions to lure the customers. Other factors like increased coverage of lives/property, diverse customer-friendly products and rapid growth of multiple channels, like agency, bancassurance, etc., are gradually gaining momentum to intensify the level of competitiveness in the market. But unfortunately, this has somehow compromised the quality of service that is being delivered to the customers, and no attempt has been made to measure and ensure the service quality of this industry. This research aims to identify the determinant factors that contribute a substantial role in sculpting customers’ perception of service quality in Indian life insurance sector. Six factors were identified after the whole data mining process (using factor analysis) which were considered to be as the ‘Factors Influencing of Service Quality Perception in Indian Life Insurance Sector’.