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POLICYHOLDER'S ATTITUDE TOWARD ICICI LOMBARD GENERAL

INSURANCE COMPANY -FACTOR ANALYSIS

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International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 5, Issue 4 (XVI): October - December, 2018

POLICYHOLDER’S ATTITUDE TOWARD ICICI LOMBARD GENERAL INSURANCE

COMPANY – FACTOR ANALYSIS

Dr. A. Muthusamy1 and Jansi Rani. P2

1
Professor , Department of International Business, Alagappa University, Karaikudi
Research Scholar2, Department of Commerce, Alagappa University, Karaikudi

ABSTRACT
The insurance industry in India is growing at a very tightly way of walking and running. With any one entry of
more and more private part insurance company, the competition within the industry is becoming very strong
(great). Competition in the country among the insurance companies is a strong issue as there have been new
entrants into the market. Thus policyholder satisfaction is most important because of their retained by the
management. The insurance company does not bother about their policyholder needs, thus they lose their
valuable policyholders. This study aims to identify the factor that influencing the two wheeler insurance
knowledge of the person with insurance knowledge of the person with insurance policyholders to choice of
ICICI Lombard general insurance company. For that 25 factors are analyzed and ranked based on the
policyholders as two wheeler insurance policyholders of ICICI Lombard general insurance company.
Demographic variable are analyzed for the purpose of understanding the two wheeler insurance policyholders
background. A survey of 50 two wheeler insurance policyholders was taken and analyzed for understanding the
factor that influencing the two wheeler insurance policyholders to choice of ICICI Lombard general insurance
company. From this study researcher identified that premium, claim settlement percentage, cover more
services, agent’s attitude in guiding the claim settlement, etc. Had a most valuable rank from the two wheeler
insurance policyholders and knowledge of the person with insurance, office appearance, ect. Had a least rank
from the ICICI Lombard general insurance two wheeler insurance policyholders. In addition factor analysis
was used over 25 factors, it gave a result with 6 factor keys which were clubbing with similar variables.
Keywords: General insurance, Policyholder’s attitude, Factors, Customer satisfaction, Factor analysis.

INTRODUCTION
Insurance is one of the needed products for all life and it is a fact of life with everywhere. People life is always
coming with risk, so the people need to take insurance for their life to reduce the risk. This is the main reason
for the insurance sector’s growth at present in India. Insurance companies provide new products with new
innovations and new ideas for survival of this competitive world market. Insurance is a profitable industry with
the multiple dimensions. Two wheeler insurance is one of the tools, not only to predict the risk, but also provide
the financial support to the two wheeler insurance policyholders. In India 24 life insurance companies are there
at present in that one public sector insurance company, i.e. LIC and 23 private sector insurance companies, 23
non-life insurance companies in that six public sector insurance companies and 17 private sector general
insurance companies, 6 health insurance companies and 2 re-insurance companies operating their business in a
very effective manner in India. Life insurance provides the benefit upon the death of the insured. Non-life
insurance gives protection against the properties of the insured1.
ICICI Lombard general insurance company limited is one of the leading private sector general insurance
companies in India who operating two wheeler insurance in a very effective manner. It provides general
insurance, reinsurance, insurance claim management and investment management to its policyholders. Gross
earned Rs.130 billion for the financial year 2017-2018. The insurance products offered by the ICICI Lombard
general insurance company:
 Car insurance
 Health insurance
 Travel - International insurance
 Overseas travel students insurance
 Two wheeler insurance
 Homer insurance
 Weather insurance
 Specialty line insurance
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International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 5, Issue 4 (XVI): October - December, 2018

 Property insurance
 Marine insurance
 Liability insurance
 Crop insurance
In this study the ICICI Lombard general insurance two wheeler insurance policyholders taken as the
policyholders in identifying the factor that influencing the two wheeler insurance policyholders to choice of
ICICI Lombard general insurance company.
IMPORTANCE OF THE STUDY
The Indian insurance industry has helped in the growth of Indian economy. Now-a-day insurance industry
market performance is very high. Insurance industry plays a major role in India’s emerging economy as the
number of two wheeler insurance policyholders of various insurance products in growing rapidly.
Two wheeler insurance policyholders are an asset of the every insurance company, but they do not know about
their customer’s needs and wants. Thus, resulted the policyholder quit their insurance company to others. The
study an attempt to understand the factors which have affected the policyholder choice of the insurance
company.
STATEMENT OF THE PROBLEM
The services provided by the insurance companies are almost similar in nature and type and thus the
policyholders are exposed to diversified choices. This means that there are unlimited switching choices and
/policyholders will choose the alternative that gives him maximum satisfaction in references to different factors
that differentiate insurance benefit from each other. Indian insurance industries have been undergoing rapid
changes, reflecting a number of underlying developments. The competition among the insurance companies is
essentially based on the technology and innovative products and services provided by the insurance companies
which may help them to attract and retain the policyholders. The competition and saturation in the insurance
industry requires insurance companies to be more customer focused as the policyholders today are much
concerned about the value for money.
This study is attempting towards finding out what factors most influence policyholders while making company
selection. A list of factors are taken into account for the purpose like location, infrastructure, global reach, speed
and quality of services provided, internet banking facilities, staff professionalism and guidance, the reputation
of the firm, etc. The variations on the perception of choices with regard to factors will provide a useful insight
to insurance companies when selecting their marketing strategies.
OBJECTIVES OF THE STUDY
The following are the main objectives of the study
 To identify various factors influencing customer’s choice for select the ICICI Lombard general insurance
company for taking two wheeler insurance.
 To determine the relative importance of each factor influencing customer choice.
SCOPE OF THE STUDY
The study covered only two wheeler insurance policyholders of ICICI Lombard general insurance company.
The present study has been conducted in Karaikudi region. A purposive sample of 50 policyholders who had an
experience of offline and the online insurance system was taken. The policyholders were requested to give their
responses with respect to the factors they would consider while making a choice of ICICI Lombard general
insurance company.
METHODOLOGY
The study is analytical in nature. The researcher has gone through primary data, i.e. interviewing policyholders.
The total of 50 policyholders were contacted, the policyholders were the two wheeler insurance policyholders of
ICICI Lombard general insurance company in the Karaikudi region. The research design used for the purpose
was descriptive and various factors are taken into account in understanding the customer’s choice of ICICI
Lombard general insurance company.
Structured Schedule was prepared for the use in the survey based on the objectives of the study. The questions
were divided and organized into two sections: in the first section of the questionnaire questions were asked
regarding the age, income, and education. The second section of the questionnaire asked, policyholders

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International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 5, Issue 4 (XVI): October - December, 2018

questions related to the insurance company. They were measured on a five point Likert-type scale of importance
ranging from 1 (strongly disagree) to 5 (strongly agree)
PERIOD OF THE STUDY
The present study covers a period of three months, taking from August 2018 to October 2018.
DEMOGRAPHIC PROFILE OF POLICYHOLDERS
Demographic profile of policyholders, it contains information regarding age, gender, education level, income.
From the table no.1 the demographic profile of the policyholders with frequency and percentage are indicated.
Table No-1: Demographic Profile of the policyholders
Details Frequency %
Male 32 64
Gender Female 18 36
Total 50 100
18-25 8 16
26-35 24 48
Age 36-45 15 30
Above 45 3 6
Total 50 100
Below 20000 11 22
20000-35000 16 32
Monthly income 35000-50000 18 36
Above 50000 5 10
Total 50 100
School 12 24
Graduate 22 44
Education level Post Graduate 9 18
Professional 7 14
Total 50 100
Source: Computed
Interpretation: Out of 50 policyholders from the Karaikudi region, 64% (32) policyholders are male and 36%
(18) policyholders are female. The majority of the policyholders belong to the categories of 26-35 year and 36-
45 year age groups as 48 and 30 numbers of policyholders respectively. Out of 50 policyholders, 36% (18)
policyholders income between Rs.35000-50000 p.m. and 32% (16) policyholders income between Rs.20000-
35000 p.m. The majority of the policyholders belong to the graduate and school category with 44% and 22%.
MODE OF OPERATION
The following table no.2 shows that the two wheeler insurance policyholders how they operate their insurance
account with ICICI Lombard General Insurance Company.
Table No-2: Modes through which policyholders operate their insurance account
Details Frequency %
Personal visit 9 18
Debit Card 12 24
Internet Banking System 13 26
Through Agent 6 12
Mobile Banking System 10 20
Total 50 100
Source: Computed
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International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 5, Issue 4 (XVI): October - December, 2018

Chart No-1

Source: Computed
REASONS FOR CHOICING ICICI LOMBARD GENERAL INSURANCE COMPANY
The following factors which influence one who is under take insurance product from the ICICI Lombard
general insurance company. The 25 factors is mentioned in table No.3 to find out which factors have a great
influence on customer’s choice for a ICICI Lombard general insurance company.
Table No-3: Customer’s choice of ICICI Lombard general insurance company - Rank
S. No Factors Rank
1. Courtesy of staff 9
2. Premium 1
3. Reminder for renewal of policy 8
4. Response time 7
5. Knowledge of the person with insurance 25
6. Product type 6
7. Office appearance 24
8. Officers / Agents are easily locatable 23
9. Speed in Claim settlement 5
10. Motivation given by the officials to buy the policy 22
11. Attitude of Surveyor 10
12. Guidance / help at the time of purchasing the policy 11
13. Contacts by the development Officers/Agents after issuing the policy 12
14. Agent’s attitude in guiding the claim settlement 4
15. Company’s attitude in settling claims 13
16. Development officer’s attitude in helping the policyholder at the time of making claims 14
17. Moral support 15
18. Bonus for next premium payment 16
19. Amount settled by the company (the relative worth of the amount) 17
20. Convenient Service 18
21. Transparent of the Policies 19
22. Claim Settlement Percentage 2
23. Benefits associated with the policy 20
24. Cover more services 3
25. Promptness in issuing the policy 21
Source: Computed
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International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 5, Issue 4 (XVI): October - December, 2018

Interpretation: Out these 25 factors the top 10 most important factors are premium, claim settlement
percentage, cover more services, agent’s attitude in guiding the claim settlement, speed in claim settlement,
product type, response time, reminder for renewal of policy, courtesy of staff and attitude of surveyor.
FACTOR ANALYSIS
Factor analysis is the one of the tool to data reduction and summarizing. In that inter related variables are
analyzed and combined in one group. Principle component analysis is used this study. This method used to find
the minimum number of factors with maximum variance in the data. Table no.4 shows the identified factors to
analyze the influence on customer choice for an insurance company.
Table No-4: Factor identified to analyze the influence on customer choice
S. No Factors
C1 Courtesy of staff
C2 Premium
C3 Reminder for renewal of policy
C4 Response time
C5 Knowledge of the person with insurance
C6 Product type
C7 Office appearance
C8 Officers / Agents are easily locatable
C9 Speed in Claim settlement
C10 Motivation given by the officials to buy the policy
C11 Attitude of Surveyor
C12 Guidance / help at the time of purchasing the policy
C13 Contacts by the development Officers/Agents after issuing the policy
C14 Agent’s attitude in guiding the claim settlement
C15 Company’s attitude in settling claims
C16 Development officer’s attitude in helping the policyholder at the time of making claims
C17 Moral support
C18 Bonus for next premium payment
C19 Amount settled by the company (the relative worth of the amount)
C20 Convenient Service
C21 Transparent of the Policies
C22 Claim Settlement Percentage
C23 Benefits associated with the policy
C24 Cover more services
C25 Promptness in issuing the policy
Source: Computed
KMO and Bartlett’s Test Experience about the Policyholder’s attitude towards general insurance
Table No-5: KMO and Bartlett's Test
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .628
Approx. Chi-Square 1140.188
Bartlett's Test of Spheriregion Df 300
Sig. .000
Source: Computed
The high value of KMO (0.628>.05) of indicates that a factor analysis is useful for the present data. The
significant value of Bartlett’s test of Spheriregion is 0.000 and is less than 0.05 which indicates that there exist
significant relationships among the variables table no.5. The resultant value of KMO test and Bartlett’s test
indicate that the present data is useful for factor analysis.
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International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 5, Issue 4 (XVI): October - December, 2018

Policyholder’s attitude towards ICICI Lombard general insurance

Factor analysis is a powerful technique has been used to identify the underlying dimensions for a set of
variables. The main task is reducing the number of variables in order to simply subsequent analysis. The rotated
factor is loading received by factor F1,F2,F3,F4,F5 and F6 are present in the table no.6.
Table No-6: Total variance explained policyholder’s attitude towards ICICI Lombard general insurance
Initial Eigen values Extraction Sums of Squared Loadings
Component
Total % of Variance Cumulative % Total % of Variance Cumulative %
C1 6.289 25.154 25.154 6.289 25.154 25.154
C2 4.201 16.806 41.960 4.201 16.806 41.960
C3 3.272 13.086 55.046 3.272 13.086 55.046
C4 2.418 9.670 64.716 2.418 9.670 64.716
C5 1.727 6.908 71.624 1.727 6.908 71.624
C6 1.533 6.132 77.756 1.533 6.132 77.756
C7 .979 3.914 81.671
C8 .929 3.714 85.385
C9 .773 3.094 88.478
C10 .685 2.742 91.220
C11 .380 1.519 92.739
C12 .297 1.187 93.926
C13 .280 1.119 95.045
C14 .246 .985 96.029
C15 .210 .840 96.870
C16 .185 .741 97.611
C17 .143 .570 98.181
C18 .109 .436 98.617
C19 .088 .353 98.970
C20 .067 .270 99.240
C21 .063 .252 99.491
C22 .049 .197 99.688
C23 .032 .129 99.817
C24 .028 .111 99.928
C25 .018 .072 100.000
Source: Computed
Extraction Method: Principal Component Analysis
It is observed from table no.7 that only 6 factors have Eigen value more than one, so accordingly the researcher
proceeded with these factors. The total variance explained by these factors (1, 2,3,4,5,6) was 25.154%,
16.806%, 13.086%, 9.670%, 6.908%, 6.132% of variance, whereas the cumulative variance explained by all
these factors is 77.756 %.
Table No-7: Rotated component matrix - Policyholder’s attitude towards ICICI Lombard general insurance
Component
1 2 3 4 5 6
VAR0001 .180 .186 -.481 -.056 .545 -.021
VAR0002 .449 .464 -.495 -.106 -.355 -.115
VAR0003 .807 .308 -.059 .200 .014 .000
VAR0004 .563 .105 -.580 .235 -.018 .039
VAR0005 -.625 -.311 -.312 -.036 -.248 -.030
VAR0006 -.368 .399 .725 -.119 -.078 .119
VAR0007 .749 .307 -.041 .326 -.065 .159
VAR0008 .103 .095 .094 .620 .132 .658
VAR0009 .612 .552 .128 .140 .193 -.024
VAR0010 -.015 -.321 .076 .225 -.427 .661
VAR0011 .471 -.126 .137 -.515 -.125 .297
VAR0012 -.012 .562 .149 -.478 -.218 .240
VAR0013 -.643 .331 .420 -.245 -.044 .150
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International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 5, Issue 4 (XVI): October - December, 2018

VAR0014 .118 -.738 -.028 -.263 .381 .056

VAR0015 .409 .777 -.211 -.123 -.054 .025
VAR0016 .420 -.758 .302 .059 -.220 -.240
VAR0017 .573 .144 .444 .249 .078 -.440
VAR0018 .621 -.243 .604 .169 -.213 -.183
VAR0019 -.650 .195 .247 .334 .130 -.074
VAR0020 .336 -.045 .588 .190 .527 .162
VAR0021 -.593 .270 -.474 .385 -.215 -.105
VAR0022 .174 -.148 -.343 -.519 .479 .282
VAR0023 -.469 .748 .286 .021 .129 -.039
VAR0024 -.811 .212 -.048 .132 .287 -.129
VAR0025 -.333 -.310 -.226 .646 .117 .095
Source: Computed
*Six components extracted from the table no.7.
Interpretation: Table no.7 shows each statement corresponding to the highlighted factor loading which is
correlated with the factors corresponding to that factor loading. Higher the factor loading, stronger is the
correlation between the factors and statement. On the basis of rotated component matrix the factor extraction
table has been prepared which is as under. Factor Extraction Table given below in table no.8 it shows the
variables in each factor corresponding to the loading and percentage of variance.
Table No-8: Factor Extraction Table
Factors % of variance Loading
F1 25.154
Reminder for renewal of policy .807
Response time .563
Office appearance .749
Speed in Claim settlement .612
Attitude of Surveyor .471
Development officer’s attitude in helping the policyholder at the time
.420
of making claims
Moral support .573
Bonus for next premium payment .621
F2 16.806
Premium .464
Guidance / help at the time of purchasing the policy .562
Company’s attitude in settling claims .777
Transparent of the Policies .270
Benefits associated with the policy .748
F3 13.086
Product type .725
Contacts by the development Officers/Agents after issuing the policy .420
Convenient Service .588
F4 9.670
Amount settled by the company (the relative worth of the amount) .334
Promptness in issuing the policy .646
F5 6.908
Courtesy of staff .545
Agent’s attitude in guiding the claim settlement .381
Claim Settlement Percentage .479
Cover more services .287
F6 6.132
Officers / Agents are easily locatable .658
Motivation given by the officials to buy the policy .661
Source: Computed

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International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 5, Issue 4 (XVI): October - December, 2018

Interpretation: The above table no.8 stated that the factors are in the order of the degree of importance, i.e.
factor 1 is more important than factor 2; factor 2 is more important than factor 3 and so on. The variance of
factor 1 and 2 is the highest variance as compared with factor 3, 4, 5 and 6.
CONCLUSION
The primary objective of this study was to determine the factors that affecting the customer’s choice for the
selection of ICICI Lombard general insurance company. Out of the 25 factors the top 10 most important factors
are premium, claim settlement percentage, cover more services, agent’s attitude in guiding the claim settlement,
speed in claim settlement, product type, response time, reminder for renewal of policy, courtesy of staff and
attitude of surveyor. The factor analysis applied on the 25 factors summarizes them into six key factors. The
value of variances has been derived which entails that the first factor is more important than second, factor 2 is
more important than the third and so on. Thus, the company should focus more on the reminder for renewal of
policy, response time, office appearance, speed in claim settlement, and attitude of surveyor, development
officer’s attitude in helping the policyholder at the time of making claims, moral support and bonus for the next
premium payment. So, the company management should analyze all these factors, give due weightage to these
factors and make appropriate marketing strategies to retain and attract the potential policyholders in order to
increase their market share and profits.
REFERENCE
1. Dr. Dipin Mathur, Mr. Ashish Tripathi, “Factors Influencing Customer’s Choice for Insurance Companies-
A Study of Ajmer Region”, IOSR-JBM, e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 2. Ver.
I (Feb. 2014), PP 35-43.
2. Dr.A.Muthusamy & Jansi Rani.P, “A study on financial performance of private sector general insurance
companies in India”, Research review International Journal of Multidisciplinary, ICIMP-2018 – Sep.,
Special issue ISSN: 2455-3085 (Online), PP 329-331.
3. http://www.policyholder.gov.in
4. https://www.irdai.gov.in
5. Annual report of selected company’s websites

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