This was my dissertation data findings presentation. Thought I'd upload it for the benefit of anyone planning on researching on the same area.

1. A presentation by Yesitha Batepola
For BSc in Business Management (Hons)
2011011050
1

2.  Introduction to the research
 Research objectives
 Research design
 Research strategy
 Reliability and validity analysis
 Discussion
 Key findings
 Recommendations
 Limitations to the study
 Conclusion and future research
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3.  Life insurance is a financial instrument that pays out a
sum of money either on the death of an insured person
or after an agreed period (Investopedia, 2014).
 Mainly concerned with providing financial stability to
dependents/ beneficiaries of an insured person in the
event of their death.
 Life insurance is a globally lucrative market (Ernst and
Young, 2014). South Asia has been named ‘the global
powerhouse of growth for life insurance’ (Wiley
finance, 2012).
 Compared to other countries in the region with similar
economic, cultural and social characteristics, market
penetration is low in Sri Lanka (Wiley finance, 2012).
 Hence problem statement: ‘What are the factors that
influence potential Sri Lankan consumers’ formation of
purchase intentions towards life insurance policies?’
3
2,494,899
number of
life policies
in force in Sri
Lanka as at
end 2013
17life
insurance
providers in
the local
market
0.6%
insurance
premium
income as a
percentage
of GDP

4. 24.30%
7.80%
18.29%
12.20%
$1,489.23
$1,256.66
$2,587.02
$2,923.21
4.40%
0.30% 0.88% 0.61% 0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
$0.00
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
$3,000.00
$3,500.00
India Pakistan Philippines Sri Lanka
Percent(%)
PercapitaIncome
Country
Life insurance market penetration Per capita income (US$) As a % of GDP from income of premiums
4(Sources: Author contribution based on data gathered from Business Times, 2013, World Population Statistics, 2013, Insurance Commission of
Philippines, 2011, Insurance Regulatory and development authority India, 2013, Swiss RE, 2013, Remo, 2014, Alam. 2012, Tirmizi, 2012)

5. oMain research objective
 The main objective is to identify factors that influence the purchase intentions towards life
insurance policies.
oSpecific research objectives
 To identify the best target market with the highest potential in order achieve a loyal customer
base.
 To find out the consumer awareness about life insurance and its importance.
 To find the best marketing strategies to sell life insurance policies to Sri Lankan consumers.
 To identify market opportunities that the insurers have not assessed before and assess them.
 To identify the mutual areas that need developing in how the sales personnel market different
life insurance policies.
 To gain undiscovered insights into the life insurance market and come up with strategies to be
used as tools to gain competitive advantage over the other insurers. 5

6. 6
Purchase
intentions
Demographic and geographic
characteristics
Cultural characteristics
Reference groups
Uncertainty
avoidance
Perceived Risk
Consumer awareness
Convenience
Personal factors
Beliefs
Attitudes
Lifestyle

7. 7
Research Approach
• Quantitative
• Descriptive
Research Population
• Individuals who does
not possess a life
insurance policy
Sample frame
• All non-Muslim
consumers who does not
possess a life insurance
policy residing in the
Colombo district
Sampling Method
• Random sampling
Data collection
• Self-administered
questionnaires
Statistical tools
• Cross Tabulation
• Correlation analysis
• Multiple Regression
analysis

8. Variables
Reliability analysis Validity analysis
Cronbach’s alpha Bartlett's Test Sig. KMO CR AVE
Cultural characteristics .587
Perceived risk .802 X2= 271.315, α=.000 0.763 0.837 0.563
Consumer awareness .825 X2= 435.151, α=.000 0.827 0.903 0.612
Convenience .767 X2=413.438, α=.000 0.840 0.893 0.629
Personal factors .749 X2= 661.312, α=.000 0.491 0.882 0.652
Lifestyle .751 X2= 68.882, α=.000 0.732 0.765 0.524
Purchase intentions .879 X2= 517.458, α=.000 0.818 0.891 0.623
8Decision criteria: Cronbach’s alpha > 0.7, α < 0.05, KMO > 0.7, CR > 0.7 and AVE > 0.5

9.  All hypotheses accepted except for the statistically insignificant variables
namely Cultural characteristics and Lifestyle.
 Multiple regression model generated:
 Coefficient of determination show 45.6% of the mean life insurance purchase
intentions variations can be explained by the regression model.
9
𝑷𝒖𝒓𝒄𝒉𝒂𝒔𝒆 𝒊𝒏𝒕𝒆𝒏𝒕𝒊𝒐𝒏𝒔
= 𝟏. 𝟗𝟕𝟓 − 𝟎. 𝟑𝟖𝟏 𝑷𝒆𝒓𝒄𝒆𝒊𝒗𝒆𝒅 𝒓𝒊𝒔𝒌 + 𝟎. 𝟏𝟖𝟗 𝑪𝒐𝒏𝒔𝒖𝒎𝒆𝒓 𝒂𝒘𝒂𝒓𝒆𝒏𝒆𝒔𝒔
+ 𝟎. 𝟏𝟗𝟗 𝑪𝒐𝒏𝒗𝒆𝒏𝒊𝒆𝒏𝒄𝒆 + 𝟎. 𝟐𝟔𝟖 𝑷𝒆𝒓𝒔𝒐𝒏𝒂𝒍 𝒇𝒂𝒄𝒕𝒐𝒓𝒔 + 𝑬
Independent variable Pearson correlation coefficient
Perceived risk - 0.563
Consumer awareness 0.612
Convenience 0.629
Personal factors 0.652

10. 61 – 70 age
category
Married individuals
individuals
employed in the
strategic level
Construction &
engineering,
Footwear & textile
and Tobacco
industries
Best markets
to endorse
life insurance
policies
 Convenience and the perceived
risk are the most influential
factors towards purchase
intentions.
 Sri Lankans have negative trust in
purchasing life insurance policies.
 Life insurance is often perceived
as ‘another form of’ investment.
 There is no relationship between
those individuals who have
occupational hazards and purchase
intentions.
 Computer and other technology
related industries record the
lowest
10

11.  IBSL should be proactively involved in the market
 Create product categories to promote life insurance to
Islam devotees
 Insurers should provide better training to sales agents
 Provide sales agents with a basic life insurance policy
 Describe the legal terminology in the policy documents
 Create life insurance corporate packages
 Promote insurance as an essential protection plan or a
necessity
 Incorporate academic and institutional support
 Life insurance covers for people who has contracted
AIDS 11

12.  The sample size of this research was 200
 The research was only limited to Colombo district
 Time provided for this research was from 6th March to 20th October
2014
 Only one dependent concept, ‘purchase intentions’ was considered
 Other financial constraints
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13.  Sri Lankans are quite reluctant in purchasing life insurance policies.
This is a fact.
 Although this research was conducted with many constraints, it
generated previously undiscovered insights into the life insurance
market in Sri Lanka.
 Thus all research objectives predetermined were achieved in the
research.
 Hence it is recommended to do future improved and resourceful
researches on the subject to assist the life insurance policy providers
not only in penetrating more into the market, but also in evolving the
current market.
13

14.  Alam, K. (2012) ‘Pakistan could be ranked ‘most lucrative’ to sell life policies’
(available online) Available at: http://tribune.com.pk/story/454805/pakistan-could-
be-ranked-most-lucrative-to-sell-life-policies (Accessed 17 March 2014)
 Alam, K. (2012) ‘Pakistan could be ranked ‘most lucrative’ to sell life policies’
(available online) Available at: http://tribune.com.pk/story/454805/pakistan-could-
be-ranked-most-lucrative-to-sell-life-policies (Accessed 17 March 2014)
 Business Times (2013) ‘Life insurance penetration as a percentage of GDP still
stands low’, Sunday Times, 28th April 2013
 Central Bank of Sri Lanka, Annual Report 2011-2012, Central Bank of Sri Lanka
 Chui, A. and Kwok, C. (2007) ‘National culture and life insurance consumption’
(available online) Available at: https://staging-secure.palgrave-
journals.com/jibs/journal/v39/n1/pdf/8400316a.pdf (Accessed 25 March 2014)
 Insurance Commission of Philippines, Department of Finance, Insurance
Commission Report 2011
14

15.  Remo, M. V. (2014) ‘Life insurance market penetration rising’ (available
online) Available at: http://business.inquirer.net/161733/life-insurance-
market-penetration-rising (Accessed 17 March 2014)
 Swiss Re (2013) ‘World insurance in 2012: Progressing on the long and
winding road to recovery’ [PDF] (Sigma No. 3/2013) Available at:
http://www.tsb.org.tr/images/Documents/sigma3_2013_en.pdf
 Tirmizi, F. (2012) ‘Increasing coverage: Why Pakistan’s life insurance
business is taking off’ (available online) Available at:
http://tribune.com.pk/story/454814/increasing-coverage-why-pakistans-
life-insurance-business-is-taking-off/ (Accessed 17 March 2014)
 World Population Statistics (2013) ‘India Population 2013’ (available online)
Available at: http://www.worldpopulationstatistics.com/india-population-
2013 (Accessed 17 March 2014)
15

16. 16

17. Table 1: Life insurance market in like countries according geography and per
capita income
17
(Sources: Business Times, 2013, World Population Statistics, 2013, Insurance Commission of Philippines, 2011, Remo, 2014, Alam., 2012,
Tirmizi, 2012)
Country Per capita income (US$)
Life insurance market
penetration
As a % of GDP from income of
premiums
India $1,489.23 24.30% 3.17%
Pakistan $1,256.66 7.80% 0.43%
Philippines $2,587.02 24.25 % 0.90%
Sri Lanka $2,923.21 12.00% 0.61%
Bangladesh $752.16 Not available 0.70%

18. Table 2: Life Insurance performance in Sri Lanka over the years
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(Source: Central Bank of Sri Lanka)
2007 2008 2009 2010 2011 2012 2013
No. of life policies issued 1,867,981 2,082,358 2,068,548 2,214,976 2,355,449 2,438,340 2,494,899
No. of new life policies
issued
490,454 567,621 468,317 516,139 526,023 514,516 552,436
No of life policies in force
as a % of total population
9.30% 10.30% 10.10% 10.70% 11.30% 12.00% 12.20%
No. of Life Policies in
Force as a % of the
Labor Force
24.90% 25.80% 25.60% 27.30% 27.50% 28.80% 28.30%