Pricing in Indian Life Insurance Industry: An Assessment of Key Issues
Published: 2017
Author(s) Name: Anju Verma, M. C. Garg |
Author(s) Affiliation: Asst. Prof., Haryana School of Bus., Guru Jambheshwar Univ. of Sci. and Tech, Hisar, Haryana, India.
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Abstract
The insurance sector in India has accomplished its full circle from being an open competitive market to nationalised market and reverse geared to a liberalised market again. This kind of developments in the Indian insurance sector reveals the 360 degree spin observed over a long period, almost of two centuries. This was done in order to improve the customer services and increase the coverage of the insurance industry. The new players have to formulate strong marketing strategy to compete with the giant of the market (LIC). Product, price, place, and promotional aspects would be their main goals, where pricing of their product would be huge problem for them. The scope of the present paper is restricted to discuss the problems of pricing of insurance products in life insurance arena of our insurance market. For this, initially, three factors have been drawn with the help of Exploratory Factor Analysis (EFA), afterwards to test the significance, one-way ANOVA and student t-test have been applied across demographics (age, gender, qualification, hierarchy, and type of organisation). Analysis reveals that insurance companies should consider customers and their needs while pricing the insurance products and the policy should be flexible. The pricing policy should be integrated part of companys policy.
Keywords: Pricing Strategies, Indian Life Insurance, EFA, ANOVA, Hierarchy, Demographics
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