“ A STUDY ON CONSUMER PERCEPTION TOWARDS

BANCUSSURANCE WITH REFERENCE ”

AT
SBI LIFE INSURANCE
Synopsys submitted in partial fulfilment of the requirement for
MASTER OF COMMERCE

BANGALORE NORTH UNIVERSITY

By

GOWRISH R

Reg.no: CM183407

Under the Guidance of

Dr. KAVITHA VANI S D Asst. Prof

L B S Govt. First Grade College

R T Nagara, Bengaluru 560 032
Affiliated to Bangalore North
University
2019-2020
ABSTRACT

Investment is the sacrifice of certain present value for the uncertain future reward. The
basic idea behind investment is to utilize the surplus money in favorable plans so that the money
will be rolled back as well as it will give returns also. Investment in share market and especially
in any of the systematic investment plan requires a lot of calculations and study of that
particular investment plan. When a common man thinks about investment he will never go for
any risky plan. Some persons can take interest in risky investment plans. The basic objective
of this research paper is to identify why and how an individual decides for investment? And if
he decides for systematic investment plan then what are the factors responsible for the decision
making for systematic investment plan? The present scenario of investment in share market is
highly unpredictable. The increased pace of market competition due to liberalization and
privatization forced life insurers to be competitive by cutting cost and serving in a better way
to the customers. In view to reach huge untapped market, the concept of Bancassurance was
introduced by the IRDA. Bancassurance is a new and an emerging model of channel of
distribution adopted by almost all the life insurance players to increase the market share and
insurance penetration. The present study is conducted with an objective to understand the role
of bancassurance in Indian life Insurance Industry and to measure customer awareness and
perception towards buying life insurance products from banks
INTRODUCTION

Human life is a most precious asset and life insurance is one of the ways which provides
financial protection to a person and his family at the time of any disaster. Life insurance
provides both safety as well as protection to individuals and also boosts savings among people.
Insurance companies play an important role in the welfare of human well-being by providing
protection to millions of people against life risks such as uncertain death or accident.
SBI Life insurance is the most trusted and popular brand in life insurance, the market
share of private insurers are gradually increasing with people trust. The new private players
offer many new innovative products and services. They are increasing the awareness level
among consumers by using innovative and new techniques of advertisement, introducing new
products, increasing penetration of life insurance of consumers in uninsured markets. The
competition among public and private players has helped to increase in variety of products
being offered from pure risk based to ULIP plans.
Customers are the back bone of life insurance business. Every company tries to attract
new customers and retain existing customers in order to keep their profits high. This helps
insurance companies to maintain a good competitive edge on its competitors. proper
understanding of consumers, their needs and expectations help insurance providers to bring
betterment in product as well as services offered. In comparison with the developed foreign
countries, the Indian life insurance industry has achieved only a little due of low customer
awareness, high premiums, delayed and poor customer services, lack of suitable products.
In today's competitive world, it becomes necessary for life insurers to provide customer
satisfaction, spread more awareness, stress on need based innovative products and affordable
price. This would help every individual to avail the benefits of insurance and protect their lives
against future risks and uncertainties. Earlier life insurance was used as a tool to protect the
income of families, particularly young families in income saving phase, in the event of the head
of household's death. But now, life insurance is used for many other reasons, including wealth
preservation and tax saving. Whether an individual needs to have life insurance or not, merely
depends on his need.

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Review of Literature

Swami and Subramanian (1994) analyzed and evaluated the efficiency among 6 national
banks, 4 private sectors, and 3 foreign banks. Functional productivity is derived in accordance
with total business and salary expenditure for each employee. Their evaluation disclosed that
Bank of Baroda achieved highest productivity and gross revenue per working personnel amidst
the nationalized banks while amidst the private sector banks, Indus bank recorded greatest profit
per employee trailed by Citibank. However, there are large differences in productivity of all
nationalized banks.
Samar (1999) examined investment plans of the LIC in the North East India. He focused to
examine that in which areas of activities, LIC invested its assets in this region. He witnessed
unevenness in investment in infrastructure and expansion in the region comparison to other
regions of India and recommended that LIC should have to invest in infrastructure development
in this region to reach out to the grass root level to eliminate the deficiency.
Barua (2004) examined that in India the idea of Bancassurance seems, by all accounts, to be
making progress quickly both through percentage based arrangements and joint ventures
amongst banks and insurance agencies. Consolidating the focused edge of the insurance
organizations in product development with the banks edge in distribution of services, the
insurance penetration in India has expanded from 1.9 in 2000 to 4.8 in March 2004.
Reserve Bank of India Occasional Papers (2006) uncovered that bancassurance frameworks
by method for sensible premise of feasible revenue to banks by exploiting the consolidated
impact in the point of view of India holding the main keeping bank on the one side and insurance
dispersion on the another. The examination additionally concentrated that the achievement of
bancassurance to a great extent relies on upon banks ensuring superb client relationship. In this
way, banks ought to try towards that.
Bhatia and Singla (2015) analyzed the factors affecting the Bank Employees acceptance and
motivation level from bancassurance of 100 respondents from two cities of Haryana. After
agents, banks are the preferred medium of buying insurance because of banks' commitment, cost
effectiveness and return on investment. In addition, given the benefits of updated policy
information and ease in premium payments and claims receipt, a majority of the employees are
willing to sell insurance policies through the bancassurance mode and offer one stop solution to
the financial needs of their customers. Hence, the future of bancassurance can be bright in India
too if the tying up companies can channelize their efforts effectively to tap the bank employees.
Rajasekar and Kumari (2014) surveyed customer preference for buying the life insurance
products through bank channels. This study was conducted to understand the satisfaction levels
of the customers. It also helps in identifying the customer's awareness on the quality of the
product delivery and bancassurance. As such ha been now proposed to enquire into the levels of
customer satisfaction regarding the (insurance) product, price, quality, and awareness of the
customer on bancassurance and how far it has reached the objectives of a country’s development.

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 Research Gaps
A review of the existing literature of earlier studies in this same context of Insurance and
bancassurance analysis has revealed that most of these studies have left some gaps and the
present study intends to fill some of this gap as discussed hereunder –

• The present study is different from past studies in the sense that it proposes to investigate
the level of customers’ satisfaction from the various kind of factors which effects the
customer satisfaction from bancassurance services. It has been observed after reviewing
the available researches that no in-depth study has been made to analyze the performance
of bancassurance services of public and private sector banks.
• Secondly, the research studies previously undertaken have merely focused on marketing
of insurance products through bancassurance mode. No attempts have been made to
compare the level of satisfaction of the customers from bancassurance services of
selected public and private sector banks. The present study is a unique study because
simultaneously, it aims at conducting a consumer satisfaction from bancassurance
services in Haryana, with judgment sampling techniques.
• Similarly, most of the former studies examined the contribution of bancassurance in the
growth of life insurance business. It is a competitive time and is essential to provide
higher value to the consumers. The present study focuses on problems faced by
customers in public and private sector banks from bancassurance services and measures
the gap in the service quality which is providing by the various banks.
• Majority of the studies relate with the insurance corporation only, no attempt was made
to give any suggestive measures for improving the performance of bancassurance
services in banks. The present study is a modest attempt to give the customers’ view
point to improve the bancassurance services.

Statement of Problem
The key attributes for any business to succeed depends on the customers perception and
satisfaction towards the company. The aim of marketing is through understanding the changing
customer attitude and their varying preferences or perceptions for buying an Insurance plan. The
company should be cost effective to give the best solution to the client to suit his/her position. In
Insurance field private players need to do lot of work in order to attract the people, whereas public
sector companies in insurance do not face these problems mainly as public sectors are directly
controlled by the government rather than a foreign company which tie-up with an Indian
company for selling life guards. When it comes to the question of security it takes hard to
convince our people as still private sectors are considered only as a work place which is not
assured like a government job. This study is carried to understand the position of private players
when compared to public, and also to find the most preferred policies with these leading
companies. It also is to define the problem based on the future of bancassurance which shows a
growth rate of 64% according to this study which powers a good welcome entry in India. This
study is also to analyze the segment wise preference among different age groups

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OBJECTIVES
➢ To determine reasons behind opting for an insurance.
➢ To determine customers perception towards the insurance company and their
expectation form insurance company.

➢ To know whether the service offered by the company has satisfied the needs of all
groups of people.
➢ To find out the benefits preferred by the customers.
➢ To know about their views about the company and to assess their views.

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Working Methodology:
Collection of the data for the study can be drawn from following methods for study.

Sources of the data:

After determining the objectives of study and research design, the next important step is data
collection method. The information has to be collected from the retailers. During the process
of the study the data is collected from the target segment that is customers, dealers and
distributors with help of a structured well designed questionnaire.
Data is collected from:
• Primary data
• Secondary data
Primary data

It will be collected through questionnaire prepared which contains relevant questions that are
both close ended and opened. Individual and group interviews also under taken with
difference consumers, I will collect mainly the Primary Data for my study by utilizing the
questionnaire and interview methods.

Secondary data
These data will be collected from published sources such as Magazines, NEWS papers,
several books, and also from the help of web site www.sbilife.co.in.
Sampling plan of the study:
Sample size:
Sample size refers to number of elements to be included in the study several qualitative
factors should also be taken into consideration when determining the sample size. These
include the nature of research, number of variable, and nature of analysis, sample size
used in similar studies incidence rates, completion rates, and resources constraints.

Sampling method:
The researcher had choice between probability and non probability sampling methods. In
this study a simple non probability method namely convenience sampling is adopted.

NON PROBABILITY METHOD – CONVENIENCE SAMPLING METHOD

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LIMITATION
➢ The study has been restricted only to one company in the life insurance sector. So, the
findings of the study may not be generalized to other companies.
➢ For the non-life insurance segment, the various types of insurance policies sold by them
have been clubbed together to restrict the scope of the study.
➢ The study is based on primary data collected through a well-structured questionnaire.
There may be a possibility that respondents may not truly report their behavior
regarding certain aspects or may misinterpret the points mentioned in the questions.

CHAPTER SCHEME

CHAPTER 1: INTRODUCTION
It includes introduction on the study, objectives of the study, scope of the study
and limitations of the study.
CHAPTER 2: INDUSTRY AND COMPANY PROFILE
It includes Industry profile and Company profile
CHAPTER 3: RESEARCH METHODOLOGY
It includes research design and methodology
CHAPTER 4: ANALYSIS AND INTERPRETATION
It includes analysis of data gathered or collected
CHAPTER 5: CONCLUSION
Bibliography
Annexure