7|Page Factor affecting people to purchase life insurance policy

1.0. Introduction
1.1 Origin of the Report
Among the insurance policies life insurance one of the most popular policy in the insurance
sector of Bangladesh. So the study has been made on life insurance policy to identify the
factors affecting people to purchase life insurance policy.
1.2 Research Question
The main research question of this report is:
What are the factors affecting people to buy life insurance policy in Bangladesh?
1.3 Objectives
So in terms of research questions the objectives of this research are

To observe the practical scenario of life insurance market in Bangladesh

To find out the those factors that affect the people of Bangladesh to purchase the life
insurance policy

1.4 Scopes of the Report

In this report some factors are included and some are excluded. Such as:
Included are:
Implementation of bank management
Theoretical explanation of life insurance policy
Place of collecting data
Figure out the factors, analyze it and finally conclusion
Excluded are:
Political intervention
Environment and nature

1.3. Literature Review

Mantise and Farmer (1968) showed that marriages, births, personal income, population
size, relative price index, and employment could affect the insurance purchase, many studies
have been conducted to estimate the demand for insurance or to test risk-aversion.
Anderson and Nevin (1975) in the study looked at the life insurance purchasing behaviour
of young newly married couples. The study suggested that the wife and the insurance agent
are playing an influential role in the type of insurance purchased by young married
households.
Campbell (1980) found that not only does a portion of currently accumulated household
wealth act as a substitute for insurance; there is also a portion of future human capital that
households should self-insure.

8|Page Factor affecting people to purchase life insurance policy

Goldsmith (1983) in the paper developed and investigated the relation between a wife's
human capital accumulation and household purchases of life insurance on the husband.
Households with a more educated wife, ceteris paribus, were found to have a lower
likelihood of purchasing term insurance on the husband. He suggested that household
characteristics and the decision-making environment are important determinants of a
households insurance purchasing behavior.
Truett and Truett (1990) showed that age, education, and level of income are factors that
affect the demand for life insurance, and that income elasticity of demand for life insurance is
much higher in Mexico than in the United States.
Gandolfi and Miners (1996) showed that there are meaningful differences between
husbands and wives in their demand for life insurance.
Chen, et al. (2001) revealed that insurance demand of baby boomer generation is quite
different from that of previous generations using cohort analysis.
1.4. Research Methodology
Research Design: This report is mainly both normative and quantitative research. The main
focus of this report is to figure out the factors then analyze the data and finally recommend on
the basis of analyzing data.
Sources & Collection of Data: For this report we have used two types of data- primary and
secondary.
Primary data: Primary data have been collected by talking with several insurance companies
as well as face to face conversation with the policy holders .We have collected data through
both convenience sampling and judgment sampling .Judgment sampling was selected because
not all people know about life insurance policy.
Secondary data: Secondary data have been collected from various Web-sites, Books,
Articles, Manuals of insurance company etc.
Data Analysis:

First we study the theories

Then we gather the data on the implementation
At last we try to figure out the differences between theory and implementation and
then some recommendations
Data have been analyzed through SPSS.

1.5 Limitations
There are limitations in making this report. Those limitations are given below:
Access to information
Access to resources
Time management
Access to experts for editing, proof reading, and guidance
Support from organizations and participants
Lack of fund

9|Page Factor affecting people to purchase life insurance policy

2.0 Insurance in general terms

2.1 Definition:
The insurance policy is generally an integrated contract, meaning that it includes all forms
associated with the agreement between the insured and insurer.
In some cases, however, supplementary writings such as letters sent after the final agreement
can make the insurance policy a non-integrated contract.
2.2 Parts of an insurance contract:
Declarations - identifies who is an insured, the insured's address, the insuring company,
what risks or property are covered, the policy limits (amount of insurance), any applicable
deductibles, the policy period and premium amount. These are usually provided on a form
that is filled out by the insurer based on the insured's application and attached on top of or
inserted within the first few pages of the standard policy form.
Insuring agreement - describes the covered perils, or risks assumed, or nature of coverage,
or makes some reference to the contractual agreement between insurer and insured. It
summarizes the major promises of the insurance company, as well as stating what is
covered.
Conditions - provisions, rules of conduct, duties and obligations required for coverage. If
policy conditions are not met, the insurer can deny the claim.
Endorsements - additional forms attached to the policy form that modify it in some way,
either unconditionally or upon the existence of some condition. Endorsements can make
policies difficult to read for non-lawyers; they may modify or delete clauses located
several pages earlier in the standard insuring agreement, or even modify each other.
Policy riders - A policy rider is used to convey the terms of a policy amendment and the
amendment thereby becomes part of the policy. Riders are dated and numbered so that
both insurer and policyholder can determine provisions and the benefit level. Common
riders to group medical plans involve name changes, change to eligible classes of
employees, change in level of benefits, or the addition of a managed care arrangement
such as a Health Maintenance Organization or Preferred Provider Organization (PPO).

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2.3 Risk in the perspective of customers:

Financial risk: sometimes consumers are concerned about losing money.

Performance risk: you might be worried that the policy does not work.

Time risk: You might be concerned that one policy may require more time to put
together or to get it to work right than another policy.

Psychological risk: Sometimes people are concerned that an insurance policy may
not fit their self-image.

3.0 Emergence of the Insurance businesses in Bangladesh

Insurance is not a new idea or proposition to the people of Bangladesh. About half a
century back, during the British regime in the then India, some insurance companies started
insurance business, particularly life, in this part of the world. Since 1947 until 1971 insurance
business gained momentum in this part of what was then known as East Pakistan. There were
about 49companies transacting both life and general insurance business. These companies
were operating under a free competitive economy. After the emergence of the Peoples
Republic of Bangladesh in 1971, the government, in order to make available the fruit of
liberation to the general mass, nationalized the insurance industry along with the banks in
1972 by Presidential Order No. 95. By virtue of this order, save and accept postal life
insurance and foreign life insurance companies, all companies and organization
transacting all types of insurance business in Bangladesh came under this nationalization
order. At the same time, five insurance corporations were initially established by the
Government1) Jatiya Bima Corporation (National Insurance Corporation),
2) Teesta Bima Corporation (Teesta Insurance Corporation),
3) Karnaphuli Bima Corporation (Karnaphuli Insurance Corporation),
4) Rupsa Jiban Bima Corporation (Rupsa Life Insurance Corporation),
5) Surma Jiban Bima Corporation (Surma Life Insurance Corporation)
Insurance is not a new business in Bangladesh. Almost a century back, during British rule in
India, some insurance companies started transacting business, both life and general, in

11 | P a g e F a c t o r a f f e c t i n g p e o p l e t o p u r c h a s e l i f e i n s u r a n c e p o l i c y

Bengal. Insurance business gained momentum in East Pakistan during 1947-1971, when 49
insurance companies transacted both life and general insurance schemes. These companies
were of various origins British, Australian, Indian, West Pakistani and local. Ten insurance
companies had their head offices in East Pakistan, 27 in West Pakistan, and the rest
elsewhere in the world. These were mostly limited liability companies. Some of these
companies were specialized in dealing in a particular class of business, while others were
composite companies that dealt in more than one class of business.
4.0 The government guidelines for formation of an insurance company
(1) The intending sponsors must first submit an application in prescribed form to the Chief
Controller of Insurance for prior permission
(2) After necessary scrutiny the Chief Controller shall forward the application with his
recommendation to the Ministry of Commerce
(3) After further scrutiny, the Ministry of Commerce shall submit its views to the Cabinet
Committee constituted for this purpose
(4) The decision of the Committee, if affirmative, should be sent back to the Ministry of
Commerce which in turn should send it back to the Chief Controller of Insurance for
communicating the same to the sponsors
(5) The sponsors would then be required to apply in a prescribed form to the Registrar of
Joint Stock Companies to get registration as a public liability company under the Companies
Act. Memorandum and Articles of Association duly approved by the Controller of Insurance
would have to be submitted with the application
(6) Once the registration process was completed the sponsors would have to obtain
permission of the Securities and Exchange Commission to issue share capital
(7) Reinsurance arrangements would have to be made at this stage
(8) After all the above requirements were fulfilled the license to commence business under
the Insurance Act 1938 is to be obtained from the Chief Controller of Insurance. Application
can only be made subject to government announcements in this regard.

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5.0 Life Insurance

Nowadays, life is full of risks and uncertainties. People might not know when will fall sick or
in need of a major surgery where large amount of money is needed. Life insurance is known
as 'Life Assurance'. Life insurance provides risk coverage to the life of a person .Insurance
provide protection against loss of income and compensate to the policy holder when the
person death.
It's difficult to apply a rule-of-thumb because the amount of life insurance you need depends
on factors such as your other sources of income, how many dependents you have, your debts,
and your lifestyle. The general guideline is between five and ten times your annual salary.
The debate over term versus whole life insurance goes on. Some experts recommend that if
you're under 40 years old and don't have a family disposition for a life threatening illness, go
for term insurance, which offers a death benefit but no cash value.
Whole life offers both a death benefit and cash value, but is much more expensive. Half of all
cash value policies are surrendered within the first seven years, making the coverage very
expensive because huge commissions (thousands of dollars the first year) and fees limit the
cash value in the early years. Since these fees are built into the complex investment formulas,
most people don't realize just how much of their money is going into their insurance agent's
pockets.
5.1 Types of Life Insurance:
Term Life: Term insurance is pure insurance that offers a predetermined death benefit if
you die within the term covered, but doesn't build up a cash value during your lifetime. (By
comparison, whole life insurance offers both a death benefit and a cash value, but is much
more expensive.)
Whole Life: In this more traditional life insurance policy, the premiums stay the same over
the life of the policy, which stays in effect until your death, even after you've paid all the
premiums. A cash reserve is built up, but you have no control over how it's invested.
Variable Life: Variable life polices build up a cash reserve that you can invest in any of the
choices offered by the insurance company. The value of your cash reserve depends on how
well those investments are doing.

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Universal Life: You can vary the amount of your premium with Universal life insurance
policies by using part of your accumulated earnings to cover part of the premium cost. You
can also vary the amount of the death benefit. For this flexibility, you'll pay higher
administrative fees.
6.0 Problem of Insurance Business in Bangladesh

6.1 Social Problems: Social problems of insurance business is given bellow

Less Public awareness
Centralization

Poor economic conditions

Poor financial position of the insurance companies
Higher cost of business
Problems of economic bases and effective principle
6.2Political problems: Political problems of insurance business is given bellow
Political instability
Lack of supervision from the government
Problem of planning and administration
6.3Legal Problem: Legal problem of insurance business is given bellow
Too much complexity
6.4 Other problems: Other problems of insurance business is given bellow
Lack of qualified officials
Traditional method
Lack of training for the employees
Lack of exposure
Absence of business ethics
Lack of motivation program towards public
Lack of information technology
Insufficient service
Lack of marketing policy

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7.0 Factors affecting people to buy life insurance policy in Bangladesh (considering
different segments of insurance)
Personal factors such as age, life-cycle stage, occupation, economic circumstance,
personality type and core values all influence consumer behavior.
Product choice can be greatly influenced by a consumers economic circumstances
If spendable income is low, then they may need your insurance product to be tailored
to fit their available income.
People of Bangladesh have a very small saving potentially and thus have less or no
disposable income. Almost the whole of the income is exhausted in the process of
maintaining the day-to-day life. This factor discourages many to buy life insurance
policy
Low per capita income is considered to be the main reason for poor life insurance
penetration in Bangladesh. The country has a very low per capita income and over
50% of our total population lives below the poverty line. Inability to save or
negligible savings by a vast majority of population kept them away from the horizon
of life insurance.
In recent years, the number of women who are head of the household has increased.
These women purchase life insurance to ensure the funds for childcare and household
maintenance are there in the event of their death
Family is yet another aspect of social factors influencing consumer behavior
The social circles attitudes as well as self-concept play a role in buying insurance
policies
People are constantly exposed to new behaviors and lifestyle choices.
Social class is another cultural factor affecting consumer behavior and their insurance
purchases. Differing social classes show distinct product and brand differences in
many areas
Personal Factors:
There are a number of personal factors that will change both your policy needs and costs
when you purchase life insurance. Your medical history will be very important, and there
are certain health issues that are more influential than others. These are the primary health
concerns to look out for:
Cardiovascular disease
Alcohol or drug use

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High blood pressure

Bad cholesterol
Obesity
Flying as a private pilot
Illiteracy is another factor. About 70% of the population is floating in the sea of
ignorance. Illiteracy leads one to think that the insurance is deception; it is no value in
life. They cannot think rationality because they do not know what is insurance and
what its importance as security for future.
Religious superstitions or religious attitude of the people also stands against efficient
insurance. The religious people believe that the future is uncertain, it is in the hand of
Allah and they do not think it necessary to buy life insurance policy for them.
Most of the policyholders discontinue their policies owing to price spiral and shortage
of fund
An important reason for the dismal performance of insurance business in Bangladesh
is poor client services provided by the insurance companies. The public image of
service from life insurance institutions is very poor
8.0 Output of the Survey on Customer Preferences Regarding Insurance Policy
8.1 Identification of Null Hypothesis:
Here, we are mainly dealing with the variables to identify the factors that affect people to
purchase life insurance policy. So we have to prove that the variables that we are dealing
have correlation among them. To prove that we have considered a null hypothesis (H0) that is
the variables are perfectly correlated with themselves (r=1) but has no correlation with
other variables.
8.2 KMO Test:
Table No. 8.1: KMO Test
KMO Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy
Source: Primary data collection, 2014

0 .521

From the above table, we can see that the KMO test result is 0.521. KMO test measures the
sampling adequacy as well as the appropriateness of factor analysis. If the KMO test result is
less than 0.5 then the sample is considered to be inadequate and the model is considered to be
inappropriate. As the KMO test result of this sampling is 0.521, we can consider the sample
as adequate and this model is appropriate.

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8.3 Bartletts Test:

Table no. 8.2: Bartletts Test
Bartlett's Test
Bartlett's Test of Sphericity

Approx. Chi-Square
Df
Sig.

340.587
153
.000

Source: Primary data collection, 2014

In Bartletts Test of Sphericity, Chi-square value denotes whether the sample represents the
population or not. Here, the Chi-square value is 340.587 and degree of freedom is 153. As the
Chi-square value is comparatively very high, we can denote that the sample represents the
population.
8.4 Correlation Matrix:
(See Appendix 1)
The correlation matrix identifies the direction and strength of the variables with other
variables. It is also an identical matrix that means the diagonal of the correlation matrix must
be comprised of 1. From the correlation matrix we can see that variables have high
correlation among them. So, the null hypothesis the variables are perfectly correlated with
itself (r=1) but has no correlation with other variables is rejected as there exist high
correlation among the variables.
8.5 Communalities:

Table no. 8.3: Communalities

Age of the respondent

Gender of the respondent
Occupation of the respondent
Insurance Policy Holder
View of the respondent
Choosing an Insurance Company
Education level of the respondent
Family Type
Social Circle's Attitude to Insurance
Cultural factor to Insurance
Social Class's attitude
Religious attitude
Family Attitude to Insurance
Health Problem of the respondent

Raw
Extraction
.612
.019
.655
.069
1.165
4.201
.188
.033
.589
.254
.637
.091
.276
.064

Rescaled
Extraction
.711
.083
.727
.275
.905
.999
.347
.102
.650
.360
.665
.112
.389
.172

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Intend to buy an insurance policy

Discontinue of a purchased policy
Reason to discontinue of a purchased policy
Buying problem of a consumer
Source: Primary Data Collection 2014

.072
.035
3.703
1.729

.169
.194
.987
.978

From the communalities table, we have got initial and extraction value. Extraction value of a
particular variable represents the percentage of sharing variances of the particular variable
with other variables. Here, the first variable whose extraction value is 0.711 means that this
variable shares 71.1% of its variance with other variables. From the table we can see that
eight variables share more than 60% with other variables, which represents the correlation
among the variables. So the null hypothesis is rejected as the communalities table shows
correlation among the variables.
8.6 Total Variance Explained:
Table no. 8.4: Total Variance Explained
Component
Initial Eigen values
1
4.677
2
3.918
3
1.878
4
1.555
5
1.231
6
1.134
7
.943
8
.869
9
.560
10
.422
11
.398
12
.354
13
.317
14
.268
15
.255
16
.176
17
.150
18
.082

24.376
20.420
9.789
8.105
6.414
5.912
4.916
4.529
2.920
2.199
2.075
1.843
1.651
1.396
1.329
.919
.783
.425

24.376
44.795
54.584
62.689
69.103
75.014
79.931
84.460
87.380
89.578
91.653
93.496
95.147
96.543
97.873
98.792
99.575
100.000

Source: Primary Data Collection 2014

From the total variance explained table we can see that six variables have got Eigen values
more than 1. It means these six variables can explain more than one variable. So we can
consider them as factor. Now these six factors can represent 75.014% of variance from the
total variance. We know that if the factors represent more than 60% of the total variance, then

18 | P a g e F a c t o r a f f e c t i n g p e o p l e t o p u r c h a s e l i f e i n s u r a n c e p o l i c y

factor analysis is considered to be as appropriate. So this model is effective and appropriate

as the factors represent 75.014% of the total variance.
8.7 Component Matrix:
Table no. 8.5: Component Matrix
Component Matrix
Particulars

Rescaled
1
2
Age of the respondent
.170
.271
Gender of the respondent
.150
-.130
Occupation of the respondent
-.083
.155
Insurance Policy Holder
-.214
-.015
View of the respondent
.214
.069
Choosing an Insurance Company
.817
.564
Education level of the respondent
-.276
.420
Family Type
.060
-.086
Social Circle's Attitude to Insurance .051
-.158
Cultural factor to Insurance
.260
.055
Social Class's attitude
.167
-.369
Religious attitude
.054
-.211
Family Attitude to Insurance
-.090
.220
Health Problem of the respondent
-.218
.230
Intend to buy an insurance policy
.214
-.122
Discontinue of a purchased policy
-.367
.085
Reason to discontinue of a
-.642
.753
purchased policy
Buying problem of a consumer
-.131
-.046

3
.129
-.022
.183
.137
.068
.048
.304
-.140
-.034
-.215
.070
.047
.134
-.241
-.139
-.053

4
.564
-.207
.668
-.152
-.726
-.001
.019
.173
.069
.219
-.176
.210
-.287
.038
.059
.036

5
.272
.006
.424
-.271
.215
-.043
-.011
.202
-.754
-.163
.418
.134
.465
-.078
.067
-.135

6
.448
.025
.190
-.336
.526
-.096
-.044
.020
.221
.411
-.539
.023
.128
-.074
-.285
-.174

-.049

-.051

-.012

-.049

.970

-.021

-.129

-.018

Source: Primary Data Collection 2014

From the components matrix table we see that there have 18 variables and 6 factors.
Component matrix represents how many times the specific factor is explained by the number
of variables. From the table we can see that factor 1, 2, 3 and 4 are explained by 10 variables
among 18 variables. On the other hand, factor 5 and 6 are explained by 9 variables.

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8.8 Rotated Component Matrix:

Table no. 8.6: Rotated Component Matrix
Rotated Component Matrix
Rescaled
Particulars
1
2
Age of the respondent
.774
.017
Gender of the respondent
-.157 -.205
Occupation of the respondent
.834
.122
Insurance Policy Holder
-.364 .165
View of the respondent
-.235 -.255
Choosing an Insurance Company
.042
-.078
Education level of the respondent
.070
.439
Family Type
.220
-.080
Social Circle's Attitude to Insurance
-.298 -.129
Cultural factor to Insurance
.202
-.130
Social Class's attitude
-.116 -.330
Religious attitude
.223
-.194
Family Attitude to Insurance
.113
.121
Health Problem of the respondent
-.051 .367
Intend to buy an insurance policy
-.039 -.148
Discontinue of a purchased policy
-.114 .341
Reason to discontinue of a purchased
-.007 .968
policy
Buying problem of a consumer
.024
-.109
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 14 iterations.

3
.250
-.022
-.049
-.112
.145
.043
-.018
-.085
.651
.474
-.732
-.067
-.245
.047
-.234
-.031

4
.090
.112
-.060
-.208
.869
.053
.088
-.032
-.335
-.004
-.062
-.103
.544
-.062
-.203
-.161

5
.043
-.052
.101
.228
-.001
-.023
.371
-.194
.084
-.228
-.046
-.010
.073
-.166
-.182
.041

6
.199
.030
-.027
-.085
.098
.993
.066
-.032
-.044
.157
-.021
-.098
.014
-.021
.131
-.191

.031

.189

.112

-.030

-.045

.006

.979

-.065

Source: Primary Data Collection

9.0 Findings
In the research we have seen that we have taken 72 male respondents and 38 female
respondents opinion. And we have taken maximum 40 respondents (both male and
female) opinion whose age from 35 to 44.
In the research we have seen that 50% respondents intend to buy an insurance policy.
So we can say near about half of the population still are not willing to purchase an
insurance policy.
The factor amount of return on investment (21.8%) much affects in case of buying an
insurance policy.

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From the consumer point of view cost and availability of reinsurance and economic
condition (31.8%+22.7% =54.5%) affects while determining to purchase an insurance
policy.
Maximum respondents think that comparison among alternatives & problems
regarding the settlement of claims these two problems are faced personally while
buying an insurance policy. So we can say maximum people do not know vastly about
the insurance company or which one is better than others.
We have seen 9 respondents discontinued their policy due to mostly poor client
service.
10.0 Prospects of Life Insurance
In a developing country like Bangladesh Insurance business has a lot of potential to start with
because of the increased number of economic activity in the country as well as increase of
associated risks those influence the people to be secured by obtaining various types insurance
policy. Market opportunities or prospects of insurance business in Bangladesh as found from
the analysis are discussed in this section.
Population Growth: Bangladesh is the seventh most populous nation globally with a
total population of 161.1 million in 2012. Its large population will continue to be a
key driver of growth in insurance business over the forecast period. So there is a big
opportunity lies ahead insurance business. Although most of people of the country
live under extreme poverty level and want to avoid insurance policy number of
potential policy holders in Bangladesh is growing with growth of the population.
Increase of GDP: The Gross Domestic Production (GDP) of Bangladesh is
increasing gradually which results in increase of per capita income. Major reason of
unpopularity of insurance in Bangladesh is the incapability of people to pay the
premium. But with the growth in the income more and more people are now willing to
take an insurance policy for safeguarding themselves from any danger.
Increased Awareness: Today People are now much more conscious about their
safety. So they are encouraged to take an insurance policy for making their life free
from any unexpected occurrence. Increase in literacy rate is helping predominantly to
create awareness among the people regarding taking insurance policy. Besides this

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insurance companies are also trying to eradicate the negative attitude of people
towards the insurance company by organizing various programs such as seminars,
programs including social responsibilities etc.
Development of New Business: In this era of globalization to cope up with the global
demand so many new businesses starting every day. And there is an increasing
tendency of the entrepreneurs to be insured under an insurance company to protect its
company from any kind of accident. Therefore growing economic developments are
creating better scope for the insurance companies to flourish their business.

11.0 Recommendations
First of all, there is no alternative of quality service. Insurance being a service
rendering entity must provide quick services. Policyholders are highly dissatisfied
with service of JBC and SBC. Due to poor quality services, public corporations
are losing market. In order to ensure their continuity, such corporation must pay
adequate attention on their quality of service. Private companies also need put
their all-out efforts to improve quality of service so as to strengthen their position.
Secondly, the government should eliminate the difficulty in licensing procedure
and should not delay in the approval of new companies if all the requirements are
fulfilled. It will help not only to increase volume of business but also solve the
problems of unemployment.
Thirdly developed countries have stronger rule of law, so insurance companies
have to pay on claims. In developing countries with their weaker law enforcement,
an insurance company can refuse to pay and bribe the judge if the customer goes
to court. Or the owners of the company can close it and run off with the money.
We can say that Insurance must be developing our country and our economy.
In order to create the growth of insurance business in our country,
insurance companies should expand their target market by providing responsive
services and establish efficient departments to perform such task.
One of the basic requirements for the insurance industry to have
sustained

growth

is

to

enhance

training

facilities.

Bangladesh

Insurance Academy is providing training facilities and professional

education to those engaged in i n s u r a n c e b u s i n e s s i n t h e c o u n t r y.

22 | P a g e F a c t o r a f f e c t i n g p e o p l e t o p u r c h a s e l i f e i n s u r a n c e p o l i c y

The collected premium should be invested in large and beneficial

sectors so that insurance companies can return their clients expected return in
timely.
Finally, the policy holders are very much worried about the settlement of claims.
Ordinary people also consider it main constraint. Therefore, instance companies
should settle the claims as quickly as possible to create a healthy public image.
For this purpose the claim settlement procedure can be simplified and the insurers
can provide proper written guidelines of claim settlement to the policy holders.
12.0 Conclusion
In present insurance is too much important to the business and individual sector. Most of the
companies provide more or less same services. For this reason the competition is increasing
day by day between the insurance companies. On the other hand some new
insurance companies are going to start businesses in the competent market. BGIC need to
develop their some productive sectors. In present, a company cannot establish properly
without

developing

information

technology.

People

search

their

desires

requirement through Internet so, insurance companies need to develop Web address to
i n c r e a s e b o t h f o r e i g n a n d l o c a l i n v e s t o r . As is evident from the study, among the
social factors Religious attitude to insurance has got the lowest mean and it is 1.10. The
insurance companies thus had better try to maintain the well-timed and satisfactory service
along with maintaining their reputation and goodwill. The companies should pay more
devotion in timely and disturbance free settlement of the claims. Further customer affiliation
management should be of paramount importance for such companies. As family attitude to
insurance influences most, if the insurance company influences the target market it can be
able automatically grab the whole market within a short period of time. Social classs attitude
to insurance has been evaluated highest mean 2.32 among customers while selecting and
purchasing insurance product which indicates the healthy competition among the insurance
industry. The progress of insurance business depends on the progress of economic condition.
Insurance business also faces many problems. So if we develop economic condition as well
overcome the problems, it will help a lot to flourish this business in our country.