Factor Analysis

An EFA was performed using a principal component analysis and varimax rotation. The
minimum factor loading criteria was set to .50. An important step involved weighing the overall
significance of correlation matrix through Bartlett’s test of Sphericity, which provided a measure
of statistical probability that the correlation matrix has significant correlation among some of its
components. The results were significant, x2 (df=28) =151.874 (p < 0.001), which indicates its
suitability for factor analysis. The Kaiser-Meyer-Olkin Measure of Sampling Adequacy, is
0.549.
Table showing the results of KMO and Bartlett’s Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling .549
Adequacy.
Bartlett's Test of Approx. Chi-Square 151.874
Sphericity df 28
Sig. .000

The following table shows the results of variance explain

Componen Initial Eigenvalues

t Total % of Cumulative
Variance %
1 2.581 32.258 32.258
2 2.546 31.830 64.088
3 1.264 15.796 79.885
The following table shows the factors obtained from factor analysis

items Component
1 2 3
Are you aware about Claim to be notified to the .915
Insurance Company as soon as it arise
Are you aware about the documents required for to get .907
the maturity claim
Are you aware about that one have to write a written .878
application to insurance company for settlement of
maturity insurance claim
Are you aware about that in case of claim are you .915
should call the respective insurance advisor
Are you aware about that in case of claim are you .854
should contact your respective agent

Are you aware about that in case of claim are you .738
should contact to branch office

Are you aware about the time frame of waiting to get .919
maturity insurance claim
Are you aware about that in case of claim are you .885
should call the respective customer helplines

The above table reveals that 8 variables highlighting the awareness of the Banca-insurance have
been compressed to form three main factors. The major factor derived from above analysis are
named as Awareness about the claims, Awareness about insurance agent, Customer help line
The above table shows the total variance explained by seven factor derived from 8 observed
item. The derived factor explain the total variance of 79.885 and each factor bear the Eigen value
above 1.00.
The regression analysis is used by taking three factors derived from factor analysis as
independent variables which regressed with the dependent variable overall awareness about
Banca- Insurance
Following hypothesis was framed to study the awareness of the respondents:

H01: There is no significant influence of Awareness about the claims, Awareness about
insurance agent, Customer help line on overall awareness about Banca- Insurance

Table showing the analysis of the awareness level of the respondents

Model Summary
Dependent variable: overall awareness about R Square F- value Sig.
Banca- Insurance
.589 16.257 .000b

B T values Sig.
1 (Constant) 3.553 50.780 .000
Awareness about the claims .277 3.914 .000
Awareness about insurance agent .355 5.006 .000
Customer help line .205 2.898 .007

The above table shows the results of regression analysis. For the purpose of analyzing weather
there is significant impact of the factor obtained by EFA represented by Awareness about the
claims, Awareness about insurance agent, Customer help line
The overall model is significant since the model P value is 0.000 which is less than 0.005.
therefore we reject our Null hypothesis that is
H01: There is no significant influence of Awareness about the claims, Awareness about
insurance agent, Customer help line on overall awareness about Banca- Insurance

Accept H1 There is significant influence of Awareness about the claims, Awareness about
insurance agent, Customer help line on overall awareness about Banca- Insurance

The above regression model has been explained by seven factors to the extend of 58% as denoted
by R square. Representing this relationship in the form of equation would be as under

Y = α + B1X1 + B2X2 + B3X3

Overall awareness about Banca- Insurance = 3.553+ .277 (Awareness about the claims) +
.355 (Awareness about insurance agent) + .205 (Customer help line)
From the above test results and the equation it may be noted that all the three variables that
explain Overall awareness about Banca- Insurance have a positive relationship. Awareness
about insurance agent being the most influencing Factor, followed by Awareness about the
claims and Customer help line.