Study of Agent’s Attitude towards the Marketing in LIC of India

Project Report on Marketing - A Study on Agent’s Attitude towards the Marketing in LIC of India

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Introduction and Significance of the Study

The role of agents and intermediaries in insurance marketing whether life or general, is of great significance. An agent is a primary source for procurement of insurance business and as such his role is the corner stone for building a solid edifice of any life insurance organization. Thus, agents play a vital role in insurance marketing. Due to poor insurance awareness on the part of the people, the insurance industry works as a sellers’ market instead of being a buyers’ market. Free interaction between the buyers and sellers in the insurance industry is not a common occurrence. The development officers who are vital for the internal sale force of the life insurance companies have a heavy schedule in the day to day operations for achieving the target fixed by the company, based on which their increments and perquisites are worked out .

Naturally, they will evince a keen interest in canvassing business of big nature to collect large amounts of premium. They would not care for the potential insurance which covers premiums of small amount. It is not being presumed that they neglect small business, but the constraint of achieving the target marks them in millions of rupees. Another undeniable fact to be noted in this regard is that the development of manpower is not commensurate enough to make the insurance product reach the remotest village of the great Indian subcontinent. Therefore, there is an obvious need for building up a network of external sales force noted as ‘agents’ to act as intermediaries between the insurance company and the client.

The efficacy of the company in utilizing the agents depends upon the interest shown by it in engaging the agents to procure insurance business of varying nature; and motivation of the development officer who keeps a direct contact with the agents to boost their morale to bring flourishing business.

Rationale for the Study

Selling life insurance products by institutional finance is not an easy job. Agents have been considered as a pivotal source of making direct marketing effort in life insurance marketing. The employment of agents, whose remuneration is the commission paid by the insurers is almost universal in the life insurance sector. Agents play a vital role in marketing the LIC of India policies, since they are given the sole authority to sell the policies to the target, the insurable population. The agents while marketing have to locate a prospect, develop a good rapport with him, identify his needs and ignite him. He must have the ability to produce a desire to process it by presenting strong reasons for purchasing the insurance. This paper explains the socio-economic conditions of the agents, the opinion of the agents towards the services rendered by LIC of India, opinion about the physical facilities and guidelines of development officers for the marketing of insurance products.

 Objectives of the Study

The study covers the following objectives:

• To analyze the opinion of the AGENTS regarding the training given by L.I.C.

• To examine the opinion of the AGENTS about the products and services  of L.I.C.

• To measure the job satisfaction of the AGENTS.

• To understand the details of the problems faced by the AGENTS.

Hypothesis

H0: Significantly to effect a good quality of life insurance sale, an agent must be product knowledge of LIC policies.

H1: Significantly to effect a good quality of life insurance sale, an agent need not be product knowledge of LIC policies

Research Methodology and Design

This study will be an empirical research based on the survey method. It will be a blend of both descriptive and analytical methods. An interview schedule will be prepared separately for finding out the attitude of the agents towards the services rendered by LIC of India. This will be helpful to know the marketing strategy of the LIC of India. The secondary data will be collected from books, journals, newspapers and so on.

Pretest and Reliability Test

A pilot study will be undertaken to identify the research problem and tools. Based on this, the structured interview schedules will be decided. With a view to identify the variable for the construction of the interview schedules, an in-depth review of previous studies will be obtained.

Moreover, discussions will be held with the agents of LIC of India, Mumbai Division. In the light of the information gathered, the interview schedules will be constructed for this study to collect data from the agents of LIC of India, about their services. The pretest will be done to collect the primary data before the field work. This study will be done on 200 agents within a period of one month by using random sampling technique. The pretest brought to light a few changes and which will be incorporated.

Sample Design

As per the instructions given by the IRDA, LIC of India opened branches in the rural, semi-urban and urban areas. The LIC of India, is located in Mumbai Division,. There are more than 25 branches in this division. All these branches will be selected under census method. About 200 agents will be selected at random in order to obtain their opinion of the services offered by LIC of India, i.e., eight agents will be selected from each branch.

Data Processing

After completing the data collection, a thorough check will be made. The whole interview schedule will be processed for coding the data in a computer. Then, the cross tables were prepared by using experts and appropriate tools will be framed to get good results

Tools of Data Analysis

•   Percentage analysis

• Discriminant analysis

• Sign test,

• Multiple Regression Analysis

Expected contribution from the Study

Life Insurance Corporation of India is a service-oriented industry. It is purely dependent on agents. It should provide quality service to the agents, such as good commission, good reward, easy process of loan, fastest process of document verification and so on that play an important role in motivating the agents. An agent is a primary source for procurement of insurance business, and as such, his role is the cornerstone for building a solid edifice of LIC. In short, he must be an agent with a professional approach in life insurance salesmanship. Such an agency force is expected to be helpful not only in proper field underwriting but also after sales, servicing-concomitant and essential elements for higher retention of business.

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