An Analysis of Policyholders' Satisfaction with LIC of India: Focus on Bidar District

Abstract

In recent years, the insurance sector has experienced significant changes in the way business is conducted. Customer service has now become the central focus for insurance companies. However, it is not an exaggeration to state that the number of customer grievances in the insurance sector has sharply increased. Addressing customer complaints is merely a reactive approach by insurers, providing the minimum expected level of service. The current need is for a more proactive strategy that seeks to identify additional factors that can enhance customer satisfaction. This study examines the key determinants of customer satisfaction among life insurance policyholders, assessing the impact of these factors on overall satisfaction. It also identifies common customer grievances related to life insurance policies. The research was confined to the town of Bidar district. The factors identified as significant to overall customer satisfaction include customized and timely service, a strong brand unique selling proposition, considerate employees, and price stability. Results indicate that satisfaction with product offerings is the primary driver of overall customer satisfaction in the case of life insurance policies, even when after-sales service falls short of expectations. While customers expressed satisfaction with their insurance policies, they were generally dissatisfied with the quality of service provided by agents.