Demographic Analysis of Factors Influencing Purchase of Life Insurance Products in India

Abstract

Understanding the consumer’s perception and attitude towards insurance and creating an insurance culture is essential in facilitating the success of insurance services. A better understanding of consumer’s behavior through demographic analysis can play an important role in predicting demand for insurance. However, emerging new complex financial products and changes in the preferences of people for preventing their risks make it difficult. The study aims to find out the relationship of demographic characteristics of the respondents with five important factors influencing the purchase of a life insurance product namely product quality and brand image, service quality, customer friendliness, brand loyalty and commitment. Product Quality and Brand Image came out as the highest ranking factors while Brand Loyalty has been rated as the least important factor. It has been further observed that these factors vary significantly across various demographic characteristics of the respondents.

Key Words: Factors, Influencing, Customer Preferences, Demographics, Insurance