The study pertains to the responses of Engineering and Management faculty

1. Global Insurance:
Practices and Outlook-2017
29th -31st July’17
A Study of Consumers’ Preferences and Perceptions
on Life and Medical Insurance
Dr. G. D. Pawan Kumar, Faculty, Hyderabad-25

2. Objectives
1. To understand the preferences and perceptions
of consumers’(Teaching Faculty) regarding
Life and Medical Insurance.
2. To assess the demographic variables that
impact the Life and Medical Insurance cover.
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3. Survey Findings-
Demographic details of Sample
• Sample Size : 105
• Random selection comprising mainly teaching
faculty from Engineering and MBA institutions.
• Gender: No’s %
Female 25 23.8
Male 80 76.2
• Family Size :
2-5 members 98 93.3
6-10 members 7 6.7
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4. Age of the Respondents
26-30 Yrs
5% 31-35 Yrs
16%
36-40 Yrs
20%
41-45 Yrs
19%
Above 46
Yrs
40%
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5. Educational background of
Respondents
Diploma
8% Graduation
/B.E/
B.Tech
18%
P.G/M.E/
MTech
42%
PhD
32%
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6. Preferences and Perceptions
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7. Type of Life Insurance preferred
Term
Policy
26%
Endowmen
t Policy
26%
Whole Life
Policy
12%
Money
Back Policy
32%
Other
Policy
4%
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8. Life Insurance Cover taken
Less than
Rs 5Lakhs
46%
Rs 6-
10Lakhs
30%
Rs 11-
15Lakhs
8%
Rs 16-
20Lakhs
8%
Above Rs
21Lakhs
8%
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9. Medical Insurance Cover bought
Rs 1.0-
2.0Lakhs
43%
Rs 2.1-
4.0Lakhs
24%
Rs 4.1-
6.0Lakhs
25%
Rs 6.1-
8.0Lakhs
3%
Above Rs
8Lakhs
5%
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10. Preference for Life Insurance Company
NR
10%
LIC
63%
ICICI
Pru
4%
Birla Sun
Life
4%
HDFC Std
Life
5%
Maxlife
3%
Tata
AIA
2%
Bajaj Allianz
1%
SBI Life
6%
Others
2%
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11. Preference for Medical Insurance
Company
United India
29%
New India
Insurance
18%
Star Health
13%
Max Bupa
4%
Apollo
3%
Religare
2%
Royal
Sundaram
2%
Others
17%
NR
12%
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12. Purpose of taking Insurance Cover
Short /Long
term savings
11%
To reduce
income tax
22%To financially
protect family
in case of
unforeseen
event
38%
To reduce
financial
burden due to
hospitalisation
27%
Other reason,
if any
2%
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13. Reasons for Low Cover
Premium
rates are
high
35%
I am
financially
strong and
do not
require
higher value
3%
I invest in
other asset
classes
23%
Returns are
Poor
16%
Other reason
if any
23%
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14. Objective 2
To find the demographic predictors influencing
Life and Medical Insurance cover by
Regression Analysis.
Demographics considered:
1. Gender
2. Age
3. Qualification
4. Family Size
5. Family Income
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15. Findings-Major Influence on buying
Life Insurance
• Qualification(Q) was found to be significant
predictor with p=0.002.
• A regression equation was found
[F(1,103)=10.239,α=.05)] with an R² of 0.090.
• 9% of the variation in life insurance cover
was explained by qualification of the
customer.
• Predicted amount of life insurance is equal to
a+b3*X3(Q) which is 0.337+0.424* (Q).
• The amount of life insurance increases by
Rs 0.42 lakhs for every increase in
qualification level.
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16. Findings-Major Influence on buying
Medical Insurance
• Family income(FI) was found to be
significant predictor at p=0.005.
• A significant regression equation was found with
F (1,103)=8.192,p=.005) with R² of 0.074
• 7.4% of the variation in the amount of
medical insurance was explained by family
income.
• The predicted amount of medical insurance is
equal to a+b5*X5(FI), which is 1.388+0.222(FI).
• Regression showed that amount of medical
insurance increases by 0.22 Lakhs for
increase in one Lakh of family income.
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17. Conclusions
1.It was statistically found that qualification of the
customer had significant influence on life insurance
cover.
2.There was a reasonable and significant correlation of
educational levels with family income(R=.502, p=.000).
3. In case of medical Insurance, family income was seen to
have significant influence on buying the cover.
4. It can be inferred that factors other than
demographics have strong and positive influence
on buying insurance.
These could be economic, financial, psychographic
or complex social factors but have eluded this
study requiring further research into the segment
considered.
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18. Conclusions in line with…
• Zeitz (2003) who observed that “given the
changes in technology, demographic
factors and the economic environment,
many of the significant findings from
studies conducted in previous decades
may likely be considered obsolete”.
• Zeitz , Emily Norman, “ An Examination of the Demand for
Life Insurance”, Journal of Risk Management and Insurance
Review, (2003) Vol:6, No 2,p 159-191
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19. Recommendations
1. An awareness programme should be taken by
Insurance companies with policies suitably
tailored to target this market- Teaching
Community.
2. Ministry of Higher Education Dept. (MHRD)
should launch a scheme for the faculty
through managements of respective institutions to
provide adequate cover under group insurance.
3. Government should make insurance
coverage mandatory akin to provident fund
by making managements responsible for
deducting suitable amount towards life and
medical insurance based on the demographics of
an employee.
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20. Recommendations…..outcome
• By providing lifetime cover for the faculty
members enrolment could increase
substantially bringing the premium rates
down, creating a win-win situation for all
stakeholders, namely, customers,
insurance companies, corporate hospitals
and government.
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21. May I have your queries, please.
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