Académique Documents
Professionnel Documents
Culture Documents
This study aimed at comparing customer orientation and customer retention strategies of
two life
assurance companies in Ghana namely SIC Life Insurance Company Ltd and StarLife
Assurance Company Ltd.
Customer retention has gained increased value among businesses and has been accepted to
have brought tangible
financial benefits to firms. Data were collected through interviews with the policyholders and
questionnaire was
administered to the management teams. The Statistical Package for Social Science (SPSS)
and MS Excel were
softwares used to analyse data. Specifically, the Friedmans test was used to determine
differences in relevant
indicators among the two companies. The findings of the study point to the fact that there
were pragmatic efforts by
both companies toward customer retention. The findings further indicate differences in
customer retention strategies
in terms of regular communication with clients and offer of bonuses. Satisfaction levels were
high and the two
companies retained a good number of their policyholders but they differ in terms of the
number of policyholders
retained annually. The findings imply deepening efforts towards regular communication with
clients, building
relationships with clients and ensuring policyholder satisfaction.
Keywords: Customer retention, Ghana, life assurance, SIC Life Insurance, StarLife Assu
1.
New customers cost more than keeping existing ones. 2.
Companies already know how to do business with the existing customers. 3.
Long term customers initiate free promotion through word of mouth and referrals.
My research aims to study the current customer satisfaction and retention scenario of IDBI
federal life insurance and suggest ways to improve it.
Problem statement
IDBI Federal Life Insurance Co Ltd. Is a joint venture company among three financial companies
IDBI Bank, Federal Bank, European insurance company AGEAS. It has grown remarkably in the last 6 years but it
still has a long way to go and customer satisfaction and retention are 2 factors which will help the company in the
long run.
Research objective
1.
To identify the current scenario of IDBI Federal Life Insurance Ltd. 2.
To identify ways to improve the customer satisfaction and retention levels.
Scope of the project
Successful companies are continuous working in the field of customer satisfaction and retention. It is not possible to
be successful without keeping the customers happy and retaining them for future business. This study will help IDBI
Federal Life Insurance in knowing the relinquishment level and how to retain the customers.
PERIOD OF STUDY
The period of the report project is 14 weeks.
Sample design
The research will be carried out among the customers of IDBI Federal Life Insurance. The sample would be around
100.
Limitation
1.
Survey has the sample size of 100 respondents so it may not be entirely correct. 2.
The survey is very objective and entirely based on the views of the respondent.
The insurance industry
The insurance sector has gone through a number of phases and changes. Insurance in India used to be tightly
regulated and monopolized by state-run insurers. Following the move towards economic reform in the early 1990s,
various plans to revamp the sector finally resulted in the passage of the Insurance Regulatory and Development
Authority (IRDA) Act of 1999.Significantly, the insurance business was opened on two fronts. Firstly, domestic
private-sector companies were permitted to enter both life and non-life insurance business. Secondly, foreign
companies were allowed to participate, albeit with a cap on shareholding at 26%. With the introduction of the 1999
IRDA Act, the insurance sector joined a set of other economic sectors on the growth march. During the 2003
financial year, life insurance premiums increased by an estimated 12.3%in real terms to INR 650 billion (USD 14
billion) while non-life insurance premiums rose 12.2%to INR 178 billion (USD 3.8 billion). Growth in insurance
premiums has been averaging at 11.3% in real terms over the last decade. There are strong arguments in favor of
sustained rapid insurance business growth in the coming