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Research Methodology
3.1 Research Methodology
Indian insurance is a flourishing industry, with several national and
international players competing and growing at rapid rates. It is
because of reforms and the easing of policy regulations, the Indian
insurance sector been allowed to flourish, and as Indians become more
familiar with different insurance products. The period from 2010 2015 projected to be the 'Golden Age' for the Indian insurance
industry1.
In the simplest terms, insurance of any type is all about managing risk.
For example, in life insurance, the insurance company attempts to
manage mortality (death) rates among its clients. The insurance
company collects premiums from policy holders, invests the money
(usually in low risk investments), and then reimburses this money once
the person passes away or the policy matures. A person called
an actuary constantly crunches demographic data to estimate the life of
a person. This is why characteristics such as age/sex/smoker/etc. all
affect the premium that a policy holder must pay. The greater the
chance that a person will have a shorter life span than the average, the
higher the premium that person will have to pay. This process is
virtually the same for every other type of insurance, including
automobile, health and property.
Demographics play one of the largest roles in affecting sales for
insurance, particularly life insurance. As people age, they tend to rely
more and more on life insurance products for their retirement. Death
benefit policies ensure that beneficiaries are financially secure once the
http://www.economywatch.com/indianeconomy/indiainsurance-sector.html, date: 14/12/11, Time: 12:36
1
103
insured dies, but in more recent years, the insurance industry has made
great headway in offering investment/savings type insurance
products. So question arise in the mind that
1. What is the trend in Indian insurance business?
2. How does insurance benefited to the society?
3. What factors affect to the buying and renewing decision of
insurance policy?
4. What is the general perception of insurance products in the
mind of people?
The main concern of the thesis here are:
1. To high light insurance industry including life insurance sector
and not life insurance sector by comparing last five years
periods data about market share, number of registered players,
investment scenario of insurance players, number of individual
and corporate agents and many others. The idea is to focus on
the comparison of insurance players on the basis of secondary
data.
2. To find out the various factors affecting to the buying and
renewing decision of insurance products by conducting the
survey in Gujarat. Considered variables for the survey are:
Demographical
variables,
Geographical
Variables,
104
The
Research
Problem
is
COMPARATIVE
105
http://www.google.co.in/#sclient=psyab&hl=en&source=hp&q=income+of+vadodara+&pbx=1&oq=income+of+va
dodara+&aq=f&aqi=g-b2gbm1&aql=&gs_sm=e&gs_upl=5206l9950l0l11873l6l6l0l0l0l3l459l1629l0.2.3.
0.1l6l0&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=cf769f0d7909f318&biw=800&bih
=461 date: 15/12/11 time: 3.00 p.m
106
three cities. So study of these three cities will give more accurate result
of whole Gujarat.
Major players include LIC, ICICI Prudential, TATA-AIG, Bajaj
Allianz and HDFC-Standard Life for life insurance policies and GIC
(All four subsidiaries), ICICI-Lombard, TATA AIG, Bajaj Allianz,
Reliance General Insurance General for general insurance policies
Insurance (only vehicle insurance and health insurance) because they
are the market leaders in terms of market share, premium amount and
number of policies issued in the market.
Mentioned market players are selected for study because they are
covering larger market share of insurance market. So study of these
players will give more accurate scenario about whole Gujarat
Insurance Industry.
Study mainly focuses on analyzing the life insurance non-life
insurance sector, comparing the major insurance players on the basis of
secondary data source, to find out the factor affecting to buying and
renewing decision of insurance policy of Gujarat people by developing
questionnaire and conducting survey in various cities of Gujarat. To
analyze the primary data, hypotheses are developed and various tests
are applied to test the hypotheses. Discussion and personal interviews
are conducted to know the scheme framing policy of insurance players.
107
108
109
110
111
112
113
Life
Health
Vehicle
Insurance
Insurance
Insurance
Surat
100
100
100
300
Vadodara
100
100
100
300
Ahmedabad
100
100
100
300
Total
300
300
300
900
114
Total
Vadodara
50
Ahmedabad
50
Total
50
115
150
of
Process
Structure,
which
is
structured
questionnaire.
Phase:2
The second Phase of the Instrument Development Process is dealt
with the following tasks:
116
117
118
119
Analysis
including
Frequencies,
Cross
120
121
122
123
The chapter plan of the thesis is carried out in the following manner
The whole thesis divided in Six Chapters.
Chapter 1 deals with the overview of Insurance Industry. The
chapter includes theoretical aspects about insurance industry. Sub-part
of the chapter includes Introduction, historical development and
growth of Indian Insurance sector, About IRDA. components of
Components of Insurance Sector, Indian Life Insurance Industry, major
Life Insurance Plans, Key Players of Life Insurance, Indian Non-Life
Insurance Industry, Key Players of Non-Life Insurance, Performance
of the Insurance Players. At the end of the chapter references are also
mentioned for the related chapter.
Chapter 2 Deals with Literature review of the study. Literature
Review includes the summary of studies related to Life Insurance,
Health Insurance, Vehicle Insurance, Marin & other insurance and
comparative study on different areas. After that gaps of the study is
mentioned. References of the related study are also mentioned at the
end of the chapter.
Chapter 3 Deals with the Research Methodology and Chapter wise
plan of the whole thesis. Sub parts of this chapter include problem
Statement, Research Objectives, Importance /Benefits of the study,
Research Design, Research questions, List of Needed Information,
Variable of the Study, Sampling Design, Data Collection Plan, Data
collection Method, Data Analysis Plan, Scope of the Study and
Limitations of the Study. Second sub part of the thesis includes chapter
wise plan of the whole thesis. At the end of the chapter references are
mentioned for the related chapter.
124
Chapter 4 deals with the Analysis of the data. The Analysis of the
data is divided into four parts:
Part 1 of Data Analysis is dealt with the Objective one, which is To
Study and Analyze different aspects of Insurance Industry. The
considered aspects are number of players, premium amount, market
share, individuals & corporate agents, investments of insurance
players, number of policies issued, numbers of claims incurred &
settled and penalty charged from insurance players.
The study presents an in-depth study on the Indian Insurance sector
for last five years for Life and Non-Life Insurance including number of
registered players in India, Number of Policies issued, Net Claim
Incurred, Market Share, Number of Individual and Corporate Agents,
Investment of Public and Private Insurance Players, Penalty charged
from different players, Penetration and Number of Offices of Insurance
Players.
Part 2 of Data Analysis is dealt with Objective two, which is
Comparative analysis of the major Insurance Players performance
by considering the different components of Profit & loss account and
Balance sheet for last five year
Comparative Analysis of major insurance players on the basis of
secondary data includes comparison of Major Insurance players Total
Numbers of Policies issued, Total Revenues, different aspects of Profit
& Loss Account and Balance sheet for last five year.
Part 3 of Data Analysis is dealt with the Objective three which is To
find out the factor affecting the buying decision and renewing decision
of Insurance Policy of Gujarats people with the help of different
variables like demographic, geographic, psychological, behavioral
and product variables, Objective four which is To find out the
perceptual views for the services provided by insurance companies
125
from the insurance investors point of view and Objective Five which
is To measure the Gujarats people attitude toward the life insurance,
health insurance and vehicle insurance
These objectives are achieved with the help of the primary data, the
primary data are collected through the structured questionnaire.
Questionnaire are filled up by insurance investors or by key decision
taker for insurance investment. The analysis process is performed for
collected data, by using various statistical tools like frequency analysis,
correlation analysis, U-test, Chi-square Test & factor analysis and
computer software like Ms Word, Ms. Excel and SPSS. Appropriate
hypothesis are developed to apply the various tests.
Part 4 of Data Analysis is dealt with the Objective six which is To
know the major Insurance Players Scheme framing Policy with the
help of personal discussion with insurance agents and insurance
experts, the objective is achieved by personal interview of insurance
agents and insurance experts of insurance players in Gujarat to study
the insurance scheme framing policy.
Chapter 5 deals with the findings of the analysis and conclusion of
the thesis.
Chapter 6 deals with the Recommendations part. The researcher
would like to add that her suggestions are not intended as master plan
for winning battle against the other insurance players performance in
the Indian Insurance Sector. The researcher has attempted to look at
the problem form her angle and that of the respondents and published
work. Others may see it differently. If it provokes discussion, this may
help to draw attention to some of the urgent problems and challenges
facing a great and growing service in which everyone has a stake.
126
3.3 References
1. Cooper Donald R and Pamel S Sthimbler. Business Research
Methods. 9th Edition. Tata Mc-Growhil Publication. PP
37:55.
2. Bhattacharya D.K. Research Methodology. 2nd edition. Excel
Book Publication. PP 25:48
3. Sachdevar J.K. Business Research Methodology. 1st edition 3rd
reprint 2010. Himalaya Publication. PP 17:88
4. Reddy Chinnam. Research Methodology and Operation
Research. 1st edition 2010. Pearson Publication. PP 24:66
5. Zimkund and William. Business Research Methods. 2nd
Edition 2009. Thomson Publication. PP 31:56
6. Ken Black C. Business statistics for Contemporary Decision
Making. 4th edition. Wiley Publication. PP - 36:115
7. Levein Richard I and Devid S Rubin. Statistics for
Management. 6th edition. Pearson Publication. PP 12:146
8. Mittal, Satyaprasad and Pradip Rao. Mathematics and
Statistics for Management. 1st edition 2005. Himalaya
Publication. PP 107:189
9. Apte D P. Statistics Tools for manager. 1st edition 2009. Excel
Book Publication. PP 87:10
10. Enderson and William. Statistics for Business Economics. 6th
edition. Cengage Publication. PP 47:68
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