Analysis of customer behavior and customer satisfaction before buying insurance and study of its market structure

1. ANALYSIS OF CUSTOMER BEHAVIOR AND
CUSTOMER SATISFACTION BEFORE BUYING
INSURANCE AND STUDY OF ITS MARKET
STRUCTURE
BY: SALONI (IBS GURGAON)

2. TABLE OF CONTENTS
S.No. DESCRIPTION
1. INTRODUCTION
1.1 CUSTOMER BEHAVIOUR
1.2 CUSTOMER SATISFACTION
1.3 CAR INSURANCE
2. TOP 10 COMPANIES OFFERING CAR INSURANCE
3. METHODOLOGY
4. HISTORICAL DATA
5. QUESTIONNAIRE
6. ANALYSIS
6.1 QUESTIONNAIRE ANALYSIS
6.2 MARKET STRUCTURE ANALYSIS
7. CONCLUSION
8. BIBLIOGRAPHY

3. INTRODUCTION

4. CUSTOMER BEHAVIOUR
CONSUMER BEHAVIOR IS THE STUDY OF HOW INDIVIDUAL
CUSTOMERS, GROUPS OR ORGANIZATIONS SELECT, BUY, USE, AND
DISPOSE IDEAS, GOODS, AND SERVICES TO SATISFY THEIR NEEDS
AND WANTS. IT REFERS TO THE ACTIONS OF THE CONSUMERS IN
THE MARKETPLACE AND THE UNDERLYING MOTIVES FOR THOSE
ACTIONS.
MARKETERS EXPECT THAT BY UNDERSTANDING WHAT CAUSES
THE CONSUMERS TO BUY PARTICULAR GOODS AND SERVICES,
THEY WILL BE ABLE TO DETERMINE—WHICH PRODUCTS ARE
NEEDED IN THE MARKETPLACE, WHICH ARE OBSOLETE, AND HOW
BEST TO PRESENT THE GOODS TO THE CONSUMERS.

5. CUSTOMER SATISFACTION
CUSTOMER SATISFACTION MEASURES HOW WELL THE EXPECTATIONS OF A
CUSTOMER CONCERNING A PRODUCT OR SERVICE PROVIDED BY YOUR
COMPANY HAVE BEEN MET.
CUSTOMER SATISFACTION IS AN ABSTRACT CONCEPT AND INVOLVES SUCH
FACTORS AS THE QUALITY OF THE PRODUCT, THE QUALITY OF THE SERVICE
PROVIDED, THE ATMOSPHERE OF THE LOCATION WHERE THE PRODUCT OR
SERVICE IS PURCHASED, AND THE PRICE OF THE PRODUCT OR SERVICE.
BUSINESSES OFTEN USE CUSTOMER SATISFACTION SURVEYS TO GAUGE
CUSTOMER SATISFACTION. THESE SURVEYS ARE USED TO GATHER
INFORMATION ABOUT CUSTOMER SATISFACTION.

6. CAR INSURANCE
NEED OF CAR INSURANCE:-
1.IT IS MANDATORY FOR EVERYONE TO HAVE A CAR INSURANCE BEFORE
DRIVING THE CAR ON ROAD.
2. IT BECOMES THE LIABILITY OF THE INSURANCE COMPANY TO PAY FOR THE
EXPENSES
INCASE OF ANY ACCIDENT.
TYPE OF CAR INSURANCE:-
1.THIRD PARTY INSURANCE
2.COMPREHENSIVE INSURANCE

7. WHAT CUSTOMERS CONSIDER BEFORE BUYING CAR
INSURANCE
1. TYPE OF CAR INSURANCE TO CHOOSE
2. ANNUAL PREMIUM WHICH WILL BE PAID
3. RISK COVER
4. TIME REQUIRED TO AVAIL INSURANCE CLAIM INCASE OF
ACCIDENT
5. ADDITIONAL BENEFITS

8. TOP10 CARINSURANCE COMPANIES
1. ICICI LOMBARD
2. THE ORIENTAL INSURANCE COMPANY
3. NATIONAL INSURANCE
4. THE NEW INDIA ASSURANCE COMPANY LTD
5. BAJAJ ALLIANZ
6. TATA AIG INSURANCE
7. UNITED INDIA INSURANCE
8. RELIANCE GENERAL INSURANCE
9. HDFC ERGO
10. ROYAL SUNDARAM

9. THE METHODOLOGY ADOPTED TO STUDY THE CUSTOMER BEHAVIOR BEFORE AND
AFTER BUYING
ANY CAR INSURANCE IS BY CONDUCTION A MARKET SURVEY. IN OUR SURVEY, WE
HAVE PUT
FORWARD A SET OF QUESTIONS IN FRONT OF THE CUSTOMERS BY WHICH WE HAVE
TIRED TO FIND
OUT ANSWERS OF THE FOLLOWING
QUES1:- WHAT DOES CAR INSURANCE MEAN TO HIM?
QUES2:- WHAT FACTORS A CUSTOMER CONSIDERS BEFORE BUYING ANY CAR
INSURANCE?
QUES3:- HOW DOES HE COMPARE DIFFERENT CAR INSURANCE POLICIES OFFERED
BY DIFFERENT
COMPANIES?
QUES4:- DECISION MAKING PROCESS OF THE CUSTOMER?
QUES5:- IS HE SATISFIED WITH THE INSURANCE POLICY WHICH HE HAS
PURCHASED FOR HIS
CAR?
QUES6:- WILL HE BUY THE SAME CAR INSURANCE FOR HIS NEW CAR PURCHASES
IN FUTURE?
AFTER THE COLLECTION OF THE ENTIRE DATA, WE HAVE CONDUCTED A THROUGH
ANALYSIS BASED

10. TO UNDERSTAND THE MARKET STRUCTURE, WE HAVE TRIED TO STUDY
THE FACTORS LIKE:
1. THE NUMBER OF COMPANIES OFFERING CAR INSURANCE IN THE MARKET
2. THE NUMBER OF CUSTOMERS WHO ARE BUYING THE CAR INSURANCE OR WHO
POSSESS
CAR INSURANCE.
3. INFORMATION AVAILABLE TO THE CUSTOMERS REGARDING CAR INSURANCE.
4. ARE CAR INSURANCE OFFERED BY DIFFERENT COMPANIES SIMILAR OR
DIFFERENT.
5. DEMAND CURVE BASED ON THE PRICE OF THE POLICY.

11. HISTORICAL DATA

12. QUESTIONNAIRE
QUES1:- WHICH COMPANY’S CAR INSURANCE ARE YOU HAVING?
ANS: 1. NATIONAL INSURANCE COMPANY
2. THE ORIENTAL INSURANCE COMPANY
3. UNITED INDIA INSURANCE COMPANY
4. BAJAJ ALLIANZ GENERAL INSURANCE
5. RELIANCE GENERAL INSURANCE
6. OTHERS, SPECIFY _____________________
QUES 2:- WHAT TYPE OF CAR INSURANCE DO YOU HAVE?
ANS: 1. THIRD PARTY
2. COMPREHENSIVE INSURANCE
3. ANY OTHER, SPECIFY______________________
QUES 3:- HOW WERE YOU CONVINCED TO BUY THE YOUR CAR INSURANCE?
ANS: 1. YOU WERE ALREADY HAVING THE SAME FOR YOUR PREVIOUS CAR.
2. CONSULTING WITH NEIGHBORS AND FRIENDS.
3. AGENT
4. INFORMATION FROM INTERNET
5. MARKET SURVEY AND ANALYSIS

13. QUES 4:- HOW MUCH INSURANCE COVER IS BEING OFFERED TO YOU BY THE COMPANY?
ANS: ______________________________
QUES 5:- WHAT IS THE ANNUAL PREMIUM WHICH YOU ARE PAYING FOR YOUR CAR
INSURANCE?
ANS:- _______________________________
QUES 6:- WHAT IS THE CLAIM SETTLEMENT PERIOD OF YOUR CAR INSURANCE COMPANY?
ANS: _______________
QUES 7:- INCASE OF ANY ACCIDENT, WHAT PERCENTAGE OF THE EXPENSES WOULD THE
COMPANY BE PAYING?
ANS: _______________
QUES 8:- WHAT OTHER ADD- ON ARE COVERED IN YOUR CAR INSURANCE?
ANS:- 1. ROAD SIDE ASSISTANCE
2. KEY & LOCK REPLACEMENT
3. ZERO DEPRECIATION
4. ENGINE PROTECTOR
5. ELECTRICAL AND NON ELECTRICAL ACCESSORIES
6. PERSONAL ASSISTANCE FOR PASSENGERS
7. ANY OTHER, SPECIFY_______________________________________________________

14. QUES 9:- ARE YOU SATISFIED WITH YOUR CAR INSURANCE?
ANS: 1. YES
2. NO
QUES 10:- WOULD YOU LIKE TO CHOOSE THE SAME CAR INSURANCE IF YOU BUY ANOTHER
CAR IN FUTURE OR
RECOMMEND IT TO OTHERS?
ANS:- 1. YES
2. NO

15. ANALYSIS BASED ON QUESTIONNAIRE
MOST PREFERRED CAR INSURANCE
COMPANY- NATIONAL INSURANCE
REASONS:-
1.LOW ANNUAL PREMIUM:- 14K-16K
2.CLAIM SETTLEMENT :- 1MONTH
3.PERCENTAGE OF EXPENSES COVERED BY
COMPANY:- 70%
4.WHILE PURCHASING NEW VEHICLE
CUSTOMERS GO FOR COMPREHENSIVE
INSURANCE BUT AFTER 6-7 YEARS OF
USAGE, CUSTOMERS ALSO OPT FOR THIRD
PARTY INSURANCE

16. ANALYSIS OF MARKET STRUCTURE
THE CAR INSURANCE COMPANY COMES UNDER MONOPOLISTIC MARKET
STRUCTURE DUE TO THE FOLLOWING REASONS:
1.THERE ARE A LARGE NUMBER OF COMPANIES OFFERING CAR INSURANCE.
2.LARGE NUMBER OF BUYERS.
3.THE CAR INSURANCE OFFERED BY THE COMPANIES ARE ALMOST SIMILAR BUT
THEY DIFFERENTIATE IT BY DIFFERENT ADDITIONAL FACILITIES OFFERED.
4.THE DEMAND OF THE CAR INSURANCE IS BASED ON THE AMOUNT OF THE
ANNUAL PREMIUM TO BE PAID BY THE CUSTOMERS. SO ITS DEMAND CURVE IS
DOWNWARD SLOPING.
5.NO PERFECT INFORMATION IS AVAILABLE IN THE MARKET TO THE CUSTOMERS
REGARDING CAR INSURANCE.
6.THERE IS AN EASY ENTRY AND EASY EXIT OPTION FOR THE COMPANY.

17. CONCLUSION
CUSTOMER SATISFACTION IS ACHIEVED WHEN THE PRODUCT DELIVERS “VALUE”
TO THE CUSTOMER.
VALUE IS DERIVED WHEN THE TOTAL BENEFITS FROM THE PRODUCT EXCEEDS THE
TOTAL COST INCURRED.
TO ACHIEVE SATISFACTION LEVELS, CUSTOMERS GO FOR THE COMPANIES
OFFERING:-
1.LOWER ANNUAL PREMIUM POLICIES
2.BETTER RISK COVERAGE
3.LESS CLAIM PERIOD
4.TIMELY SERVICE BY THE INSURANCE COMPANY REPRESENTATIVES
5.OFFERING MORE NUMBER OF ADDITIONAL BENEFITS
6.WHILE PURCHASING NEW VEHICLE CUSTOMERS GO FOR COMPREHENSIVE
INSURANCE BUT AFTER 6-7 YEARS OF USAGE, CUSTOMERS ALSO OPT FOR THIRD
PARTY INSURANCE

18. BIBLIOGRAPHY
WWW.POLICYBAZAAR.COM
WWW.BMIRESEARCH.COM
WWW.QUORA.COM
WWW.TOWERSWATSON.COM
WWW.INVESTOPEDIA.COM
WWW.ECONOMICTIMES.COM