A Study of Investor Decision Making in the Selection of Life Insurance Schemes Using Soft System Methodology SSM

Abstract

Insurance is important for a family at the eventuality of sudden death of breadwinner of the family. Thus it covers risk. Apart from risk coverage insurance schemes also provide return by investing amount collected from policyholders in various financial instruments. newline This study was carried out to find the factors affecting the selection of an insurance plan by the policy holders and the distribution opted by them. This study was carried out in Agra. For this purpose a questionnaire was prepared in consultations with Managers and Agents of different insurance companies. The questionnaire focuses on 20 attributes. Besides attributes information about the type of the policy taken and the company chosen to take an insurance plan, sum insured by them, distribution channel opted by them to take as insurance plan, preference for a policy from a particular sector and reasons for taking policy from a particular sector also were studied. Personal information regarding occupation, age, annual income etc. was also collected. newline This study has adopted Judgmental sampling method. Sample size of the study thus is 612. Besides the primary data, secondary data was also collected from journals, books and websites related to insurance sector. This study has used software packages like SPSS for data analysis using factor analysis, mean scores and cross tabulation techniques. Also MSEXCEL and MSWORD are used for graphs and certain report. newline Factor analysis has identified four factors important for selection of an insurance plan by the policy holders. These four factors are (1) Satisfaction level (2) Perceived Advantages(3) Comparison with other Schemes (4) Repeat purchases from same company. Soft System Methodology (SSM) was applied in Selecting Life Insurance Schemes. newlinePresented Study deals with the overall performance of Life Insurance Companies as can be shown in thesis title A study of Investor Decision making in the Selection of Life Insurance Schemes using Soft Systems Methodology (SSM) .