Factors influencing buying behaviour of consumers in life insurance
sector: A survey

Farnaz Haider and Mhd Shamsuzzama
Department of Agricultural Economics and Business Management, Faculty of Agricultural
Sciences, Aligarh Muslim University, Aligarh

Abstract: In the life of a person, risk and uncertainties accompanies throughout the lifespan. Usually everyone has a desire of getting a secure future, and this need can be fulfilled by life insurance services. Life Insurance sector plays an important role in economic as well as social development of the country. In most of the countries life insurance sector is growing at a fast rate. From past few decades, the concept of life insurance penetration has gained excessive attention. It has been observed that, many countries are homogenous in terms of demography, development and economy but in the case of Asia there is heterogeneity among population on basis of aforementioned categories. So, to target life insurance policy in countries of later category, the insurance company should have a proper knowledge about the demography, development and the behaviour of the consumers residing within the country. The focus of this study is to understand the overall impact of different factors that influences consumer’s behaviour towards the demand of life insurance policy. It is observed that, some factors have strong positive influence like income, education, employment while some have negative influence like price of policy, social security and tax. However, the overall understanding of factors is arbitrary because few factors such as wealth, inflation, culture, religion etc. impacts the behaviour in both positive and negative way.

Keywords: Consumer behaviour, life insurance determinants, life insurance demand.