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CHAPTER 01
INTRODUCTIONS
1.1 Background Of Study
Insurance is a very important part of personal financial planning. Because it is the quickest & easiest source of cash for family upon death & cover the any claim. Because those today lots of customers are join the insurance. So automatically increase competition companies. When increases the competitors the originations should retaining their customer. They cannot do that haven’t their profit & they can’t achieve originations objectives.
Insurance is “Basically a protection against a financial loss which can arise on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. By paying a very small sum of money a person can safeguard himself and his family financially from an unfortunate event.”
Insurance only spread the financial loses of insurance members over the whole of remaining insured. Whole assets are not damaged thus insurance company act as middle man for such social cooperation.
Life insurance policy affords protection to individual, widows and dependents to meet the critical situation. Fire marine and miscellaneous polices help the development of trade, commerce and industry hence the importance of insurance from social and economic point of view is immense of economic growth.
Insured reduce the losses
It is means of savings
It is helpful in competition
Insurance helps in spreading education
It promote international trade
It accumulates large funds for nation
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1.2 Problem statement
Insurance companies contribute an important part to the financial sector & whole economy. In Badulla ceylinco insurance company provide service to the customers but continuously monthly premium payment decreased.
2009 April 15
May 36
June 48
July 51
1.3 Objectives of research
Main objective
1. To identify the strategies to retaining customers
Sub objectives
1. To identify the competitors
2. To identify the factors to customer retaining
3. To identify the present situation of Badulla ceylinco insurance company
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Cost
LoyaltyChoice
Satisfaction
Value
RecoveryQuality
Retention
1.4 Conceptual Frame work
Figure 1.1 Conceptual Frame work
1.5 Methodology
1.5.1 Data Collection Method
Primary data Interview
Questionnaires Secondary data
Annual report of ceylinco insurance 2008Other related report - policy book, Magazine
1.5.2 Evaluation Methods
Collection data will be evaluated the based on the mean value & standard deviation of
variable. It will be discussed as following way:
Range Decision attribute
1<X=<2.5 Lower level retention
2.5<X=3.5 Moderate level retention
3.5<X=5.0 Higher level retention
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CHAPTER -02
LITERATURE REVIEW
2.1 Introduction
A literature review discusses published information in a particular subject area, and sometimes information in a particular subject area within a certain time period.
A literature review can be just a simple summary of the sources, but it usually has an organizational pattern and combines both summary and synthesis. A summary is a recap of the important information of the source, but a synthesis is a re-organization, or a reshuffling, of that information. It might give a new interpretation of old material or combine new with old interpretations. Or it might trace the intellectual progression of the field, including major debates. And depending on the situation, the literature review may evaluate the sources and advise the reader on the most pertinent or relevant.
This chapter began with retention, measuring retention, Importance of customer retention, Advantages of customer retention, Benefits of Customer Retention: Statistics, Measuring Customer Retention.
2.2 Customer retention
In today's challenging economy and competitive business world, retaining their customer base is critical to organization success. If they don't give their customers some good reasons to stay, organization’s competitors will give them a reason to leave. Customer retention and satisfaction drive profits. It's far less expensive to cultivate organization existing customer base and sell more services to them than it is to seek new, single-transaction customers. Most surveys across industries show that keeping one existing customer is five to seven times more profitable than attracting one new one.
A customer-focused approach among its employees is still not present. In this era of intense competition, it is very important for any service company to understand that merely acquiring customers is not sufficient because there is a direct link between customer retention over time and profitability & growth. Customer retention to a great extent depends on service quality and customer satisfaction. It also depends on the ability of the organization to encourage customers to complain and then recover when things go wrong. Complaints are natural part of any service activity as mistakes are an unavoidable feature of all human endeavor and thus also of service recovery. Service
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recovery is the process of putting things right after something goes wrong in the service delivery.
Customer retention is the maintenance of continuous trading relationships with customers over the long term. Customer retention is the mirror image of customer defection or churn. High retention is equivalent to low defection. Customer retention is about keeping the customers organization has spent that money to acquire. And if you’re in an industry where they make multiple purchases over the years, organization entire team should be very focused on retaining those customers:
Delivering service that’s consistent with your value proposition and brand
Cross-selling, up-selling and asking for referrals from existing customers
Developing programs to increase customer loyalty and decrease turnover
Knowing the lifetime value for different segments and using that data to
improve your marketing
Prioritizing retention as a major focus in your annual marketing plan
Studies say it costs ten times more to generate a new customer than to maintain an existing one. If organization has a small number of customers, losing a few could cripple company. Even if you have a large number of customers, a small increase in retention rate should dramatically increase profits.
The maintenance of the patronage of people who have purchased a company’s goods or services once and the gaining of repeat purchases. Customer retention occurs when a customer is loyal to a company, brand, or to a specific product or service, expressing long-term commitment and refusing to purchase from competitors. A company can adopt a number of strategies to retain its customers. Of critical importance to such strategies are the wider concepts of customer service, customer relations, and relationship marketing. Companies can build loyalty and retention through the use of a number of techniques, including database marketing, the issue of loyalty cards, redeemable against a variety of goods or services, preferential discounts, free gifts, special promotions, newsletters or magazines, members' clubs, or customized products in limited editions. It has been argued that customer retention is linked to employee loyalty, since loyal employees build up long-term relationships with customers.
Customer retention has always been an important topic for the marketing. For sure, the advantages of loyal clients are obvious. In the last years the concept had a renaissance because of the new term CRM (Customer Relationship Management). However, CRM comprises nearly every customer oriented activity from a complaint
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hotline to client cards and client clubs. Often CRM is only implementing new systems for data mining and client segmentation or operational systems like a complaint management. But the thing is: data mining systems or client clubs are not the basis. They are the cherry of the cake called client retention. A company like Porsche needs no client club to tie up the customer to the brand.
A key principle of relationship marketing is the retention of customers through varying means and practices to ensure repeated trade from preexisting customers by satisfying requirements above those of competing companies through a mutually beneficial relationship This technique is now used as a means of counterbalancing new customers and opportunities with current and existing customers as a means of maximizing profit and counteracting the "leaky bucket theory of business" in which new customers gained in older direct marketing oriented businesses were at the expense of or coincided with the loss of older customers. This process of "churning" is less economically viable than retaining all or the majority of customers using both direct and relationship management as lead generation via new customers requires more investment.
Many companies in competing markets will redirect or allocate large amounts of resources or attention towards customer retention as in markets with increasing competition it may cost 5 times more to attract new customers than it would to retain current customers, as direct or "offensive" marketing requires much more extensive resources to cause defection from competitors. However, it is suggested that because of the extensive classic marketing theories center on means of attracting customers and creating transactions rather than maintaining them, the majority usage of direct marketing used in the past is now gradually being used more alongside relationship marketing as its importance becomes more recognizable.
According to Buchanan and Gilles the increased profitability associated with customer retention efforts occurs because of several factors that occur once a relationship has been established with a customer.
The cost of acquisition occurs only at the beginning of a relationship, so the longer the relationship, the lower the amortized cost.
Account maintenance costs decline as a percentage of total costs (or as a percentage of revenue).
Long-term customers tend to be less inclined to switch, and also tend to be fewer prices sensitive. This can result in stable unit sales volume and increases in dollar-sales volume.
Long-term customers may initiate free word of mouth promotions and referrals.
Long-term customers are more likely to purchase ancillary products and high margin supplemental products.
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Customers that stay with you tend to be satisfied with the relationship and are less likely to switch to competitors, making it difficult for competitors to enter the market or gain market share.
Regular customers tend to be less expensive to service because they are familiar with the process, require less "education", and are consistent in their order placement.
Increased customer retention and loyalty makes the employees' jobs easier and more satisfying. In turn, happy employees feed back into better customer satisfaction in a virtuous circle.
2.3 Importance of Customer Retention
Why are customers more profitable for service firms over a period of time? There are a number of reasons for this. To begin with, to acquire a customer a company incurs promotional costs like advertising, sales promotion etc. It is said that it costs five times more to attract a new customer than retaining one. The operating cost decreases when a customer stays. Services being rich in experience and credence qualities, it takes some time for customers to get accustomed to it and once they are used to the service and are satisfied with the service provider ,they tend to purchase more over a period of time.
As they remain satisfied with a service provider, they spread a positive word of mouth, which is very effective in case of services for attracting new customers. Longer the customer stays with an organization, more the organization knows about him, which enables it to offer customized services which make it difficult for the customer to defect. This may even provide opportunities to the organization to charge price premium by offering individualized services which may be difficult for the competitors to offer.
Considering the importance of retaining customers in service business, Reichheld & Sasser coined a term ‘Zero Defection’. They highlighted that companies can boost profits by almost 100% by retaining just 5% more of their customers. Further, it is also very important to understand the life time value of a customer. Further, if by a positive word of mouth, he brings just one more customer to the organization, his value to the organization doubles. Therefore, it is important for all the employees in the organization to understand the life time value of their customers. Once they understand it, they will treat the customer accordingly and will focus on building relationship with the very people who keep them in business.
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2.4 Advantages of customer retention
Possibility of repeat business
This is probably the most obvious advantage of customer retention. Effective services that lead to customer satisfaction will make customer coming back to again, thus giving repeat business. Repeat business is a win-win proposition for the business / service provider and the customer. The business reduces the cost of customer acquisition, while the customer reduces the cost of finding a reliable vendor and thus also saves on costs associated with switching vendors.
Reduced costs for customer acquisition
Acquiring a customer has certain associated costs. These include the costs associated with advertising, following up, sales demos, travel and meeting costs etc. Having a repeat customer means that the customer is already aware of your processes and can predict a certain quality of output, thus minimizing the costs involved in new customer acquisition. Having a repeat customer also has the potential to open up another channel to advertise your business – word of mouth. Word of mouth advertising / recommendations are perhaps the most important outcome of having a satisfied customer.
Fostering greater interaction between business and customer
Today’s markets are increasingly moving away from mass produced standard products and services, towards a more customized market, where products and services are tailored to meet customers’ specific requirements. Having a repeat customer is an opportunity for you to build a more focused relationship based on your customers’ specific needs and requirements. Being ensured of having a customer who comes back, you have more confidence to suggest improvements, provide insights to better understand their needs and consequently design products and services that are relevant. Having a repeat business also provides an opportunity for the buyer and the seller to co-create products and services.
Having more delighted customers
Effective customer retention strategies allow you to move from the zone of customer satisfaction to customer delight. Studies have shown that customer delight is achieved only when there is a perfect synergy between the buyer and seller – when the seller understands exactly what the buyer needs and the buyer understands what the seller
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can deliver exactly what he needs. If you are able to delight your customers, you have better chances of them coming back to you, since they now know why you are different from the rest of competition.
2.4.1 Benefits of Customer Retention: Statistics
Acquiring new customers can cost five times more than satisfying and retaining current customers
A 2% increase in customer retention has the same effect on profits as cutting costs by 10%
The average company loses 10% of its customers each year A 5% reduction in customer defection rate can increase profits by 25-125%,
depending on the industry The customer profitability rate tends to increase over the life of a retained
customer Companies can boost profits anywhere from 25 to 125% by retaining merely
5% more existing customers. Only one out of 25 dissatisfied customers will express dissatisfaction. Happy customers tell 4 to 5 others of their positive experience. Dissatisfied
customers tell 9 to 12 how bad it was. Two-thirds of customers do not feel valued by those serving them.
2.5 Measuring Customer Retention
Retention rate is normally calculated as the number of customers who have been lost over a period of time, usually calculated over a quarterly or annual period. The key is to calculate the percentage versus existing customers, and not underestimate the loss rate by tallying new customer acquisitions into the mix.
The customer retention rate refers to the number of customers lost over a period of time. It is normally calculated by the percentage of lost customers versus existing customers over a quarterly or annual period, without tallying new customer acquisitions.
While there are obvious benefits to keeping customers loyal and maintaining high customer retention rates, it can be extremely challenging for management to keep retention rates up. This guide will explore some of the best customer retention strategies, important topics and common challenges related to customer retention:
According to ROI expert Tom Pisello, CEO and President of Alinean, the customer retention rate is calculated by determining the number of customers lost over a period
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of time compared to repeat customers over the same amount of time. Pisello said, "A customer is one who continues to make purchases, and a lost customer is one who has made purchases, but does not repeat these purchases for some time. The key is to analyze the repeats over a long enough horizon."
The calculation is:
(Total number of customers - the number of repeat customers)
(Total number of customers)
Some companies can measure retention rate using their CRM system, since any of the vendors with solid sales modules should offer this capability. Customer service expert Lori Bocklund, founder and president of Strategic Contact, Inc., recommends that companies look for this functionality when evaluating CRM solutions, even though it is unlikely to be the differentiating factor.
"You can also consider performance optimization tools if you want to combine things like save rate with other key performance indicators for an overall scorecard," Bocklund said. Companies like Witness, Performix, AIM, and Merced offer these types of tools. To measure this, some companies combine data from the CRM system and data from other systems, such as your quality monitoring system, ACD or CTI solution handling contact routing and reporting.
There are no hard and fast rules on calculating customer defection and customer retention, according to Lowenstein. It can depend on the industry or the type of business, since some companies have long-term arrangements with customers.
B2B customer deflection models may be somewhat more challenging, Lowenstein said, because of the greater likelihood to have missing or incomplete 'firm graphic' variables. However, several consulting and database management companies have succeeded in creating them.
However, the appropriate interval over which retention rate should be measured is not always one year. Rather, it depends on the customer repurchase cycle. Car insurance and magazine subscriptions are bought on an annual basis. Carpet tiles and hi-fis are not. If the normal hi-fi replacement cycle is four years, then retention rate is more meaningful if it is measured over four years instead of twelve months. Additional complexity is added when companies sell a range of products and services, each with different repurchase cycles. Automobile dealers might sell cars, parts, fuel and service to a single customer. These products have different repurchase cycles which make it very difficult for the dealer to have a whole of customer perspective on retention.
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Sometimes companies are not clear about whether an individual customer has defected. This is because of the location of customer related data, which might be retained in product silos, channel silos or functional silos.
2.5.1 Type of customer retention rate
1. Raw customer retention rate:
This is the number of customers doing business with a firm at the end of a trading period, expressed as percentage of those who were active customers at the beginning of the period.
2. Sales-adjusted retention rate:
This is the value of sales achieved from the retained customers, expressed as a percentage of the sales achieved from all customers who were active at the beginning of the period.
3. Profit-adjusted retention rate:
This is the profit earned from the retained customers, expressed as a percentage of the profit earned from all customers who were active at the beginning of the period.
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CHAPTER -03
INSURANCE
3.1 Introduction
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss.
Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as the premium
There are mainly two parties involved in this – the insurer and the insured. The insurer is the insurance company who will provide the cover to the insured against any financial losses. The insured may be an individual person or a group of people like an employer, members of a society. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.
Insurance is appropriate when you want to protect against a significant monetary loss. Take life insurance as an example. If you are the primary breadwinner in your home, the loss of income that your family would experience as a result of our premature death is considered a significant loss and hardship that you should protect them against. It would be very difficult for your family to replace your income, so the monthly premiums ensure that if you die, your income will be replaced by the insured amount. The same principle applies to many other forms of insurance. If the potential loss will have a detrimental effect on the person or entity, insurance makes sense.
3.2 Principles of insurance
3.2.1 Insurable Interest
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Insurable interest is a fundamental principle of insurance. It means that the person wishing to take out insurance must be legally entitled to insure the article, or the event, or the life. In other words, the happening of the event insured against, or the death of the life insured must cause the policyholder financial loss. Similarly, you cannot insure the lives of other people unless you have a financial interest in the life being insured. The principle of insurable interest demonstrates the difference between insurance and a wager or bet.
3.2.2 General Principles
Other principles apply to all kinds of insurance.
Insurance can provide compensation only for the actual value of property. It
cannot cover the loss of sentimental value, for example.
There must be a large number of similar risks so that the likelihood of a claim
can be spread among other policyholders. It must be possible for insurers to
calculate the chance of loss so that a premium can be set which matches the
risk.
Losses must not be deliberate and not inevitable. Clearly, you could not buy
fire insurance for a house which was already burning or life insurance for
someone on his or her deathbed.
Lastly, there are some risks which have financial implications so vast that they
can be dealt with only by the state. These risks (mainly those arising from war
or the major escape of nuclear or radioactive material) are normally not
insurable.
Insurance takes the risk away from people's lives and businesses. It brings
peace of mind to the policyholder. In return for paying premiums the
policyholder knows that, if the unexpected happens, financial compensation
will be available from the fund of premiums.
3.3 Type of insurance
Below are some kinds of insurances
3.3.1 LIFE INSURANCE:
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Life insurance policy insures the life of the insured. The insurance company is legally bound to provide a monetary benefit to a decedent's family or the beneficiary after the death of the policyholder. The proceeds are paid to the beneficiary either in a lump sum amount or an annuity
3.3.2 MEDICAL INSURANCE:
Medical insurance is also called medclaim. Under this policy the insurance policy pays the amount to the insured for his health purpose. This amount covers the cost of medical treatment.
3.3.3 DISABILITY INSURANCE
There are two types of disability insurance. One is simple disability insurance and the other is total disability insurance. In case of simple disability insurance, a financial support on monthly basis is provided by the insurer to the policy holder if he is unable to work due to an injury or an illness. But permanent disability insurance provides the reimbursement if a person becomes permanently disabled.
3.3.4 GENERAL INSURANCE:
It includes automobiles insurance, business insurance, property insurance etc.
3.3.4.1 Automobile insurance:
This insurance is called motor insurance. It compensates the loss or damage occurred to the vehicle. But in United States auto insurance policy is essential to legally operate a vehicle on public roads.
3.3.4.2 Business insurance:
Business insurance protects the businesses against risks of losses and damages and compensates in case of loss
3.3.4.3 Property insurance:
This type of insurance protects the property against the risks like fire, theft etc. This category also includes fire insurance, flood insurance, earthquake insurance etc
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3.4 History of insurance
The first insurance company in the United States was formed in Charleston, South Carolina in 1732, but it provided only fire insurance. The sale of life insurance in the U.S. began in the late 1760s. The Presbyterian Synods in Philadelphia and New York created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived.
Prior to the American Civil War, many insurance companies in the United States insured the lives of slaves for their owners. In response to bills passed in California in 2001 and in Illinois in 2003, the companies have been required to search their records for such policies. New York Life for example reported that Nautilus sold 485 slaveholder life insurance policies during a two-year period in the 1840s; they added that their trustees voted to end the sale of such policies 15 years before the Emancipation Proclamation.
Life insurance dates only to ancient Rome; "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in 17th century England, originally as insurance for traders merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the famous Lloyd's of London.
3.5 Life insurance
Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium.
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As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy.
The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured. To be a life policy the insured event must be based upon the lives of the people named in the policy.
There is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if Joe buys a policy on his own life, he is both the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner and he is the insured. The policy owner is the guarantee and he or she will be the person who will pay for the policy. The insured is a participant in the contract, but not necessarily a party to it.
The beneficiary receives policy proceeds upon the insured's death. The owner designates the beneficiary, but the beneficiary is not a party to the policy. The owner can change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to any beneficiary changes, policy assignments, or cash value borrowing
Life insurance may be divided into two basic classes – temporary and permanent or following subclasses - term, universal, whole life and endowment life insurance. Term assurance: provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else.
Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The four basic types of permanent insurance are whole life, universal life, limited pay and endowment.
3.5.1 Benefits of life insurance
Life Insurance provides the dual benefits of savings and security. The following
benefits explain why this investment tool should be an integral part of your financial
plans.
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Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event.
Planning for life stage needs - Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.
Protection against rising health expenses - Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs.
Builds the habit of thrift - Life Insurance is a long-term contract where as policyholder, you have to pay a fixed amount at a defined periodicity. This builds the habit of long-term savings. Regular savings over a long period ensures that a decent corpus is built to meet financial needs at various life stages.
Safe and profitable long-term investment - Life Insurance is a highly regulated sector. IRDA, the regulatory body, through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Life Insurance being a long-term savings instrument, also ensures that the life insurers focus on returns over a long-term and do not take risky investment decisions for short term gains.
Assured income through annuities - Life Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life.
Protection plus savings over a long term - Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.
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Growth through dividends - Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through annual announcement of dividends/bonus.
Facility of loans without affecting the policy benefits - Policyholders have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought.
Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans.
Mortgage Redemption- Insurance acts as an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the bereaved family
3.6 Ceylinco life history
From its inception almost half a century ago, Ceylinco has led the way in the commercial development of Sri Lanka. The story of its founding, fostering and flowering is closely allied to that of the nation itself - the island state's emergence as a model economy in the developing world. The Ceylinco success story is a reflection of the beliefs and aspirations of two entrepreneurs - a pioneering father and his equally dynamic son.
Ceylinco Consolidated is led by Deshamanya Dr Lalith Kotelawala, son of the late Senator Justin Kotelawala Ceylinco, an abbreviation of Ceylon Insurance Company, became the first registered company in Sri Lanka in 1939, and the only indigenous business dealing in insurance - a sector that was the domain of British colonial firms up until then.
The late Senator Justin Kotelawala's dream to establish and encourage an indigenous entrepreneurial spirit in the people of Sri Lanka is a living reality today. He dared to
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dream and never lost sight of it. His legacy of thinking big lives on, even today, in every existing and new Ceylinco venture that is born
3.6.1 Ceylinco Insurance Life
Established in 1987, Ceylinco insurance is today in the enviable position of being the leading private sector insurer for over a decade. It is currently placed among the country's blue chip companies. The premium income of the division exceeded Rs. 2.15 billion in 2001 -the highest recorded by a private sector insurer in Sri Lanka. With Life insurance and annuity products being the core business areas, it has developed the largest network of insurance agents, who can be accessed by customers in the remotest parts of the country. A dedicated sales force, professionally trained in Life insurance, supports the vision of covering every Sri Lankan with a Ceylinco Life policy.
Quick and fair claims settlement with minimum fuss and an islandwide network of 77 computerized branches are some of the attributes that customers have come to appreciate. The Life Fund of the company has exceeded Rs. 6 billion, indicating the fastest growing Life Fund in the industry.
Ceylinco Insurance has also produced the first batch of Diploma holders from the prestigious Life Underwriters Training Council in the US, and it is the only Sri Lankan company to send the highest number of participants to the famous Million Dollar Round Table (MDRT). Recent innovations pioneered in the Life insurance industry include a unique insurance policy for ladies, a cash bonus for policyholders, surgical insurance cover, and granting of scholarships to policyholders' children. Undoubtedly, the company's innovative policies and its professional sales force will enable it to reach the overall leadership in the industry in Sri Lanka.
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3.6.2 Service providing by Ceylinco Insurance Company
Ceylinco Insurance plans
01 Pranama
Ceylinco Life Pranama is a special scholarship scheme starting from the year 5 scholarship right upto university. This scholarship scheme was introduced in late 2001 and the first ever scholarship award ceremony was held in January 2002. Those eligible for the Ceylinco Life Pranama Scholarship scheme will only be children of Ceylinco Life Policyholders who achieve the highest academic results district-wise. If child excels in studies, sports, culture, arts and even if child has invented something new and gained recognition, you may apply for a Ceylinco Pranama Scholarship.
02. Advance Payment
Ceylinco Life Advance payment policy pays advance payments regularly & pays the balance amount at maturity with bonuses. The life Cover is not reduced although the advance payments are paid periodically
03. Double Growth
The Life Cover and the Maturity Benefit both grow by 10 or 5 per cent per year in this new product, aptly branded “Ceylinco Life Double Growth” ensuring that the value of the policy grows with each year, holding its own against inflation and other investment options in the market
04. Divisayura
Ceylinco Life Divisayura is specialized product which provides an affordable life cover for fishermen in the coastal belt of the country, in keeping with the company’s vision of providing a life cover for every family.
05. 65 Plus
For the first time life insurance policyholders will be covered for critical illness after the age of 65. "65plus" from Ceylinco life is the unique scheme to cover loyal policyholders for 20 critical illnesses even after they reach 65 years. Any policyholder who has been a policyholder for 10 years and age above 65 years could benefit under
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this scheme. All health insurance policies cease its benefits once the policyholder reaches 65 years. Ceylinco Life insurance policyholders however need not to worry as they will be covered for 20 critical illnesses for their life time. Once a policyholder reaches 65 years and has been a policyholder for 10 years he / she will qualify to benefit under the 65 plus scheme
06 Aloka
“Ceylinco Life Aloka" scheme is an Education Grant, which mainly aims at extending financial assistance to the children of deceased policyholders. This scheme ensures that the loss of his or her guardian will not result in the disruption of a bereaved child's education. Under this scheme a monthly allowance of Rs. 1,500/- will be paid to the parent/guardian for 03 years.
07. Endowment
Ceylinco Life Endowment is a very attractive product from Ceylinco Life. This is providing life insurance in the most flexible way, customizing to each customer.
08 FIB
Ceylinco Life FIB can replace an income for the period of 10 years after the death of wage earner and the dependents/beneficiaries will be guaranteed a lump sum payment for 10 years for them to meet their expenses
09 Yearly Benefits
This is a Single premium plan, where an annual payment to be paid out at the end of each policy year. The Annual payment percentage will be declared at the beginning of each year. The Single premium will be returned at the maturity of the policy. There is a Death benefit attached to this cover after the first 12 months, which is 105% of the Single Premium.
10. Ceylinco Life Retirement Account (CRA)
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Statistics show that one in every four Sri Lankan will be over 60 years of age very soon. What if you’re that one person? When that happens, have you thought about who will look after you? Ceylinco Life Retirement Account has been developed to address this issue in order that your retirement will be taken care of, so you won’t have to depend on anyone in the future. This flexible Retirement Plan will support you, as well as your family.
11 Govi Vishrama
This product is designed specially to provide financial assistance to farmers who are not secured in terms of benefits at their retiring age. It offers several options for the policyholders to pay the premium after receiving a bountiful harvest so that financial constraints will not affect the continuity of the benefits. Customers may change the premium value and as a result can decide the amount of pension to be provided at retirement.
12 Major Surgery
As you may have realized, the cost of surgical operations keep increasing day by day. The high cost of medicine, equipment and fees levied by specialized surgeons, all contribute to the amounting expenses, it usually adds to your expenditure. But now, thanks to “Ceylinco Life Major Surgery”, you can avail yourself for almost any type of surgery with no significant expenditure.
13. Jeewa Yathra
Ceylinco Life Jeewayathra guarantees a steady monthly income to look positively towards the future at a time, when one is faced with the reality of physical disability. We, at Ceylinco Life can help you to deal with this situation. Of course we know that nothing can compensate for total disability. But, we can give you the necessary financial support & peace of mind by providing you with a guaranteed monthly income on total and permanent disability, a guaranteed lump sum payment on partial disability and a guaranteed lump sum payment in case of death due to an accident
14. Yugadivi
Ceylinco Life YUGADIVI is offered as a special privilege to the Spouse of a Ceylinco Life Policyholder, enabling a Policyholder to extend cover to his or her spouse, for the same sum assured - for a few rupees more. Opting for the YUGADIVI Privilege is not only convenient, but it also strengthens family security - particularly if the spouse contributes to the family income.
22
15 Digasiri Plus
Life is full of uncertainties. When critical illnesses strike the effect is shattering. It paralyses you and your family, emotionally, physically, and economically. Ceylinco Life Digasiri, the first critical illness policy covers you and your family for 25 critical illnesses. This unique Critical Illness Policy pays you on diagnosis or upon undergoing surgery.
16 Pradeepa
The unique feature would be that it offers a life cover of Rs. 100,000/= for a term of 5 years for only one single payment of Rs. 1250/=. The maximum cover under the new scheme is Rs. 400,000/=. No hassles of going for medical examinations, just a simple application to be filled and the policy will be delivered within a day.
17 Randaru
Ceylinco Life Ran Daru is the means by which every loving father can fulfill his hopes and dreams for his precious child. If, unexpectedly, you aren’t there for your child anymore, your plans for your child’s future development will be a reality with Ceylinco Life Ran Daru, while the shadow of your love watches over your precious child.
18 Ceylinco Life Retirement Fund (CRF)
The Ceylinco Life Retirement Fund (CRF) unlike other retirement funds is flexible, giving you total control of how you enjoy and reap the benefits of your retirement. It lets you decide exactly how you get paid and at what age you retire. CRF offers you additional benefits to help you in your retirement.
23
19 Shilpa
Thinking about the further education needs of your child when planning for her/his future is a concern that many parents share. No matter how much you plan for their future it is impossible to predict whether you will have the financial stability to give them the education that they deserve.
20 Supreme
Ceylinco Life Supreme, the investment oriented investment plan, is the only life policy that pays the full policy value at maturity without any deductions of the generous periodic payments that are made every 4 years. In addition, the policy value at maturity is further enhanced by dividends”
21 Uthum
Uthum is a comprehensive insurance policy that covers you and your dependants. What is unique about Ceylinco Life Uthum is that even after receiving your benefits at maturity; Ceylinco Life Uthum continues to provide a lifetime cover for no additional fee.
22 Sipsetha
The first-ever Education Plan –it’s unique, in that it protects your child's future and provides for education. SIPSETHA pays Education Annuities during the decisive Ordinary Level, Advanced Level and higher studies years. More importantly, SIPSETHA will triple the Annuity and waive further payment of premium, if your child is left without your support. SIPSETHA will help you provide your child with the all-important extra help, to help him or her emerge above the rest in competitive examinations.
23 Family Hospital Cash
With Ceylinco Life Family Hospital Cash, you get a daily payment in the event of your hospitalization and you are paid for every day in hospital. In case you are admitted to intensive care unit you will be paid an additional Rs.2, 500/- per day, irrespective of your payments already taken.
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CHAPTER-04
RESEARCH METHODOLOGY
4.1 Introduction
The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management. Research methodology is where you describe the how goanna gather information (methods) this can be survey interview, litterateur review etc. And then explain each method what are they, what you will do in each method.
Some important factors in research methodology include validity of research data, Ethics and the reliability of measures most of your work is finished by the time you finish the analysis of data.
Formulating of research questions along with sampling weather probable or non probable is followed by measurement that includes surveys and scaling. This is followed by research design, which may be either experimental or quasi-experimental. Methodology includes a philosophically coherent collection of theories, concepts or ideas as they relate to a particular discipline or field of inquiry: [citation needed]
4.2 Method of data collection
25
Method of data collection explains the type of data required for this research and structure.
4.2.1 Type of data
Source of data can be classified in to two. Those are,
I. Primary dataII. Secondary data
Primary data
Primary data is data that we collect ourselves. It is the information that is developed or gathered by the researcher specifically for the research project to be done. Primary data are the facts and figures that are newly collected for a rese
In this research following sources collect the primary data.
1. Interview2. Questionnaires
Secondary data Secondary data will be obtained from the following ways.
1. Annual report of ceylinco insurance 20082. Policy book3. Magazine
4.2.2 Structure of the questionnaire
The questionnaire is divided into two parts.
1. Personal information2. Research information
Personal information of customer retaining consists of age, sex, civil status, educational qualification, occupation, income.
There are 10 questions include in the questionnaire to collect the data. Those are Research information.
4.3 Method of data presentation and analysis
26
Any research finally leads to a result, which would be analyzed, from the data that have been received by the researcher. Data analysis is meant to be the most sensitive part of any research work. On achieving this various methods can be adopted there are three different methods using for data analysis such as univariate analysis method is adopted.
Statistic that describe one variable are called univariate statistic. The univariate analysis consists of mean, standard deviation, percentage etc. Although the mean most commonly seen representation of central tendency and the standard deviation takes into account each observation’s distance from the mean.
The obtained data were presented through table based on the percentages of the respondents and were analysis through spread sheet under the univariate measures such as mean, standard deviation.
4.4 Method of data evaluation
After the data analysis, it must be evaluated to get the decision. Here the decision rule will be applied. That is univariate measures calculated to the decision. The likert’s scale is given 1-4 to each statement in the questionnaires. Based on the value indicated in the questionnaire, the average value for each factor is considered. The mean value lies between 1- 4 which strongly disagrees to strongly agree.
Indicate of four points liker are as follows.
1) Strongly disagree2) Disagree3) Agree4) Strongly agree
1 2 3 4
Further three types of degree of consideration that can be derived regarding differentiation variables are show in the following table.
Table5.1 decision criteria for univariate analysis
27
Range Decision attribute
1<X=<2.5 Lower level retention
2.5<X=3.5 Moderate level retention
3.5<X=5.0 Higher level retention
CHAPTER-05
DATA PRESENTATION & ANALYSIS
5.1 Introduction
This chapter contains the data presentation and analysis in which personal data and research variable. Data were Presentation and analysis. In this process all the collected data from 100 samples have been categorized and analyzed on the following basis.
The data from customers are being analyzed in two categories as personal &Research information.
This chapter contains the data presentation and analysis in which personal data and research variable. Data were Presentation and analysis.
5.2 Personal information
As the research is to identify the customers retain of Cylinco insurance in Badulla branch. In customer retaining is base on the customer satisfaction. Age, sex, civil status, education level, occupation, income are decided the satisfaction.
28
5.2.1 Age distribution
Age distribution pattern of the customer in Badulla branch it’s represented by the sample100. Age distribution class was categories in to four classes. 17% of customer represented under the age category of below 18 years. 23% represent under the age category of 18-35years. 31% and 29% of customers represent under the age category of 36-50years and over 50 years. This following table 6.1 shows this information.
Table 5.1 Age distribution
Age distribution Frequency Percentage
Below 18 years 08 08%18-35 years 23 23%36-50 years 45 45%Over 50 years 24 24%Total 100 100
Source: Survey Data
Figure 5.1 Age distribution
Source: Survey Data
5.2.2 Gender
In this research the factor of gender represent 64% of sample male & 36% of sample as female. This information is shows in the table 6.2.
Table 5.2 Gender
8% 23%
45%
24%
Age distribution
Below 18 years18-35 years36-50 yearsOver 50 years
29
Sex Frequency Percentage
Male 64 64%Female 36 36%Total 100 100%
Source: Survey Data
Figure 5.2 Gender
5.2.3 Civil status
The following table 6.3 shows civil status of sample. Out of 100 samples, 46% samples were unmarried and 54% of samples were married. This information is shows in the table 6.3.
Table 5.3 Civil status
Figure 5.3 Civil status
64%
36%
Sex
MaleFemale
46%54%
Civil status
Unmarried
Married
30
Civil status Frequency Percentage
Unmarried 46 46%
Married 54 54%
Total 100 100
5.2.4 Education Qualification
In the following table presents education qualification. That 12% of samples were found in the category of up to year 11 and 24% found to be G.C.E. O/L. 32% & 08% were G.C.E. A/L, graduates respectively. 24% were other higher qualification.
Table 5.4 Education Qualification
Source: Survey Data
Figure 5.4 Education Qualification
Source: Survey Data
5.2.5 Occupation
12%
24%
32%
8%
24%
Education Qualification
Up to year 11G.C.E. O/LG.C.E. A/LGraduateOther higher qualifica-tion
31
Education Qualification Frequency Percentage
Up to year 11 12 12%G.C.E. O/L 24 24%G.C.E. A/L 32 32%Graduate 08 08%Other higher qualification 24 24%Total 100 100
The following table 6.5 shows occupation. 10% fount professional, 36% were found be teachers & 13% were clerical. 33% and 08% of customers represent under the occupation category of unskilled workers & students.
Table 5.5 Occupation
Source: Survey Data
Figure 5.5 Occupation
Source: Survey Data
5.2.6 Income
Income was categories in to four classes. 24% customer represents the income below Rs 10000.46% & 25% customer represents the income range Rs 10000-20000& Rs
10%
36%
13%
33%
8%
Occupation
professionalteacherclericalunskilled workersstudents
32
Occupation Frequency Percentage
professional 10 10%teacher 36 36%clerical 13 13%unskilled workers 33 33%students 08 08%Total 100 100%
20000-30000 respectively. 15% represent above Rs 5000. Those were in the following table 6.6.
Table 5.6 Income
Source: Survey Data
Figure 5.6 Income
Source: Survey Data
20%
42%
25%13%
Income range
Below Rs 10000Rs 10000-20000Rs 20000-30000Above Rs 300000
33
Income range Frequency Percentage
Below Rs 10000 20 20%Rs 10000-20000 42 42%Rs 20000-30000 25 25%Above Rs 300000 13 13%Total 100 1%
5.3 Research Information
The data collected from 100 life insurance holders who were statement in order to evaluate. There are calculated the mean & standard deviation to evaluated the
research details.
Mean = Σfx
Σf
Standard deviation =
5.3.2. Evaluated Research data
Question 01
Comparing another Company service do you think that ceylinco insurance company service have a good quality?
Table 5.7
x f fx x2 fx2
Strongly disagree 1 3 3 1 3Disagree 2 15 30 4 60Agree 3 57 171 9 513
Strongly agree 4 25 100 16 400 100 304 30 976
Mean = 304/100
= 3.04
Standard deviation = 976 - 304 2
100 100
= 9.76 - 3.04 2
34
= 9.76 - 9.2416
= 0.5148
Figure 5.7
Strongly disagree
Disagree Agree Strongly agree
0
10
20
30
40
50
60
70
80
Source: Survey Data
Question 02
You can get best service from ceylinco insurance company?
Table 5.8
x f fx x2 fx2
Strongly disagree 1 9 9 1 9Disagree 2 18 36 4 72Agree 3 59 177 9 531
Strongly agree 4 14 56 16 224 100 278 30 836
Mean = 278/100
= 2.78
Standard deviation = 836 - 278 2
100 100
= 8.36 - 2.78 2
= 8.36 - 7.7284
= 0.6316
35
Figure 5.8
Strongly disagree
Disagree Agree Strongly agree0
10
20
30
40
50
60
70
80
Source: Survey Data
Question 03
The life insurance plans of the ceylinco insurance company provide highest benefits for you?
Table 5.9
Mean = 294/100
= 2.94
Standard deviation = 926 - 294 2
36
x f fx x2 fx2
Strongly disagree 1 7 7 1 7Disagree 2 13 26 4 52Agree 3 59 177 9 531
Strongly agree 4 21 84 16 336 100 294 30 926
100 100
= 9.26 - 2.94 2
= 9.26 - 8.6436
= 0.6164
Figure 5.9
Strongly disagree Disagree Agree Strongly agree0
10
20
30
40
50
60
70
80
Source: Survey Data
Question 04
The insurance plans, policies & procedure of ceylinco insurance company are understand able easily?
Table 5.10
x f fx x2 fx2
Strongly disagree 1 3 3 1 3Disagree 2 14 28 4 56Agree 3 47 141 9 423Strongly agree 4 36 144 16 576 100 316 30 1058
Mean =316/100
= 3.16
Standard deviation = 1058 - 316 2
37
100 100
= 10.58 - 3.16 2
= 10.58 - 9.9856
= 0.5944
Figure 5.10
Strongly disagree
Disagree Agree Strongly agree0
10
20
30
40
50
60
70
80
Source: Survey Data
Question 05
The premium payment of the ceylinco insurance company is less than other insurance company?
Table 5.11
x f fx x2 fx2
Strongly disagree 1 2 2 1 2Disagree 2 16 32 4 64Agree 3 68 204 9 612
Strongly agree 4 14 56 16 224 100 294 30 902
Mean = 294/100
= 2.94
Standard deviation = 902 - 294 2
38
100 100
= 9.02 - 2.94 2
= 9.02 - 8.6436
= 0.3764
Figure 5.11
Question 06
Are you paid premiums on that time?
Table 5.12
x f fx x2 fx2
Strongly disagree 1 6 6 1 6Disagree 2 36 72 4 144Agree 3 40 120 9 360
Strongly agree 4 18 72 16 288 100 270 30 798
Mean = 270/100
= 2.7
Standard deviation = 798 - 270 2
Strongly disagree Disagree Agree Strongly agree0
10
20
30
40
50
60
70
80
39
100 100
= 7.98 - 2.7 2
= 7.98 - 7.29
= 0.69
Figure 5.12
Strongly disagree
Disagree Agree Strongly agree0
10
20
30
40
50
60
70
80
Source: Survey Data
Question 07
Do you feel that your ceylinco insurance company agent is sufficiently skillful & honest to give you’re an effective service?
Table 5.13
x f fx x2 fx2
Strongly disagree 1 2 2 1 2Disagree 2 16 32 4 64Agree 3 75 225 9 675
Strongly agree 4 7 28 16 112 100 287 30 853
Mean = 287/100
= 2.87
Standard deviation = 853 - 287 2
40
100 100
= 8.53 - 2.87 2
= 8.53 - 8.2369
= 0.2931
Figure 5.13
Strongly disagree
Disagree Agree Strongly agree0
10
20
30
40
50
60
70
80
Source: Survey Data
Question 08
Are you satisfied the ceylinco insurance company policy & benefits?
Table 5.14
x f fx x2 fx2
Strongly disagree 1 0 0 1 0Disagree 2 10 20 4 40Agree 3 74 222 9 666
Strongly agree 4 16 64 16 256 100 306 30 962
Mean =306/100
= 3.06
Standard deviation = 962 - 306 2
100 100
41
= 9.62 - 3.06 2
= 9.62 - 9.3636
= 0.2564
Figure 5.14
Strongly disagree
Disagree Agree Strongly agree0
10
20
30
40
50
60
Source: Survey Data
Question 09
Do you Recommend ceylinco insurance company to your friends?
Table 5.15
Mean = 324/100
= 3.24
Standard deviation = 1108 - 324 2
100 100
42
x f fx x2 fx2
Strongly disagree 1 2 1 2Disagree 2 28 4 56Agree 3 126 9 378
Strongly agree 4 168 16 672 100 324 30 1108
= 11.08 - 3.24 2
= 11.08 - 10.4976
= 0.5824
Figure 5.15
Strongly disagree
Disagree Agree Strongly agree
0
10
20
30
40
50
60
Source: Survey Data
Question 10
Do you like work or held the relationship between you & ceylinco insurance company at long time?
Table 5.16
x f fx x2 fx2
Strongly disagree 1 1 1 1 1Disagree 2 5 10 4 20Agree 3 58 174 9 522
Strongly agree 4 36 144 16 576 100 329 30 1119
Mean = 329/100
= 3.29
Standard deviation = 1119 - 329 2
100 100
= 11.19 - 3.29 2
43
= 11.19 - 10.8241
= 0.3659
Figure 5.16
Strongly disagree
Disagree Agree Strongly agree0
10
20
30
40
50
60
Source: Survey Data
5.3.2 Customer Retention
Table 5.17 Overall Questionnaire means & stranded deviation value
Statements
Str
ongl
y d
isag
ree
Dis
agre
e
Agr
ee
Str
ongl
y ag
ree
Mea
n
Sta
nd
ard
d
evia
tion
1) Comparing another Company service do you think that ceylinco insurance company service have a good quality?
3 15 57 25 3.04 0.51
2) You can get best service from ceylinco insurance company?
9 18 59 14 2.78 0.63
3) The life insurance plans of the ceylinco insurance company provide highest benefits for you?
7 13 59 21 2.94 0.65
4) The insurance plans, policies & procedure of ceylinco insurance company are understand able easily?
3 14 47 36 3.16 0.59
5) The preumim payment of the ceylinco 2 16 68 14 2.94 0.38
44
insurance company is less than other insurance company?
6) Are you paid premiums on that time? 6 36 40 18 2.7 0.70
7) Do you fell that your ceylinco insurance company agent is sufficiently skillful & honest to give you’re an effective service?
2 16 75 7 2.87 0.29
8) Are you satisfied the ceylinco insurance company policy & benefits? 0 10 74 16 3.06 0.26
9) Do you Recommend ceylinco insurance company to your friends? 2 14 42 42 3.24 0.58
10) Do you like work or held the relationship
between you & ceylinco insurance company at long time?
1 5 58 36 3.29 0.37
Source: Survey Data
Figure 5.17 Overall Questionnaire means & stranded deviation value
1 2 3 4 5 6 7 8 9 100
0.5
1
1.5
2
2.5
3
3.5
Mean
Standard devia-tion
Question numbers
45
Source: Survey Data
The dependent variable of Customer Retention of life insurance was measured by here. The mean value is 3.002 and stranded deviation 0.496.
Table 5.17 Overall customer retention means & stranded deviation value
No of respondent MeanStranded deviation
100 3.002 0.496
Source: Survey Data
In this chapter collected data presented in the table and pie & column chart was analysis. It considers of the personal & research information. Overall analysis of factors determines the customer retention of the ceylinco insurance life policies.
CHAPTER-06
CONCLUSION & RECOMMENDATION
6.1 Introduction
This chapter explores conclusion and recommendation of the research finding through the data obtain from 100 samples of respondents who enjoy the variety of life insurance policy of ceylinco insurance. Conclusion about levels of customer retention of ceylinco insurance, according to collected from research information. Finally recommendations are provided for the outcomes of each statement to improve the level of customer retention.
6.2 Conclusions
The data was collected from the customer’s retention of the ceylinco insurance company badulla branch. The collected data analyzed in the earliest chapter.
Based on the percentage of the customers 100 sample size was collected. The age, gender, civil status, education qualification, occupation, monthly income, was analyzed in the personal information the questionnaire. According to the collected
46
personal information, most of the sample customers were middle age, get married, educated, higher income customers who got life insurance.
The reason for increasing insurance demand middle age is,
1. They are employees and they have family.
2. They wish to serve a part of money in their income for future.
3. They have interested their children’s future
4. Uncertainly of country situation.
The reason for the high percentage of male are,
1. Male are the main income earning personal in the family.
2. The males have the responsibility to the lead their family.
3. Many males take the risk for their job & their lead a risk bearing
employment.
4. Male do the heavy works.
5. Most of the business leaders are male
The married peoples are interested in the taken insurance for the benefit of there partner as well as their children & the medical expenses. Generally educated people easily understand every matter so most of graduate & other higher qualifications clearly understand benefit of insurance policies. They take insurance in the reasons mainly contribute increase the percentage of customers.
According to analyzed research data the ceylinco insurance company has moderate customer retention. Because customers don’t know about the insurance plans, benefits, quality, other service. Customers obtain & understand difficult to insurance policies,
6.3 Recommendations
The ceylinco insurance company in badulla branch has to take some action ti terrain its customers for long time.
Introduce new insurance policies to customers
Free premium for continuous purchase
Give chance to the customers who failed to pay the premium
47
Give some gifts
Increase the promotion tools (advertising, personal selling)
Establish membership cards and membership programs
Satisfaction surveys, followed up by phone calls and letters
Frequent buyer programs which permit customers to build up equity
Databases that keep track of customer’s purchases, preferences,
complements and complaints, which are used to carry out loyalty
building services and dialogs.
Integrated marketing programs where the advertising, direct
communications, customer service, database marketing and sales
programs are all orchestrated together and designed to build loyalty.
Segmentation of the customer base by lifetime value groups, and
different marketing programs designed for each segment.
PART 01
Personnel Details
Please tick “X” in the correct answer
1. Age
Below 18 years
18-36 years
36-35 years
Over 50 years
2. Gender
Male Female
3. Civil status
Single Married
48
4. Education Qualifications
Up to year 11
G.C.E. O/L
G.C. E. A/L
Graduate
Other qualification
5. Occupation
Professional
Teacher
Clerical
Unskilled workers
6. Monthly income
Below Rs 10000 Rs 10000-20000 Rs 20000-30000 Above Rs 300000
PART 02
Research Details
Evaluate the statement on the basis of the point given below
1. Strongly disagree2. Disagree3. Agree4. Strongly agree
49
7 Comparing another Company service do you think that ceylinco insurance company service have a good quality?
1 2 3 4
8 You can get best service from ceylinco insurance company?
1 2 3 4
9 The life insurance plans of the ceylinco insurance company provide highest benefits for you?
1 2 3 4
10 The insurance plans, policies & procedure of ceylinco insurance company are understand able easily?
1 2 3 4
11 The preumim payment of the ceylinco insurance company is less than other insurance company?
1 2 3 4
12 Are you paid premiums on that time?
1 2 3 4
50
13 Do you feel that your ceylinco insurance company agent is sufficiently skillful & honest to give you’re an effective service?
1 2 3 4
14 Are you satisfied the ceylinco insurance company policy & benefits?
1 2 3 4
15 Do you Recommend ceylinco insurance company to your friends?
1 2 3 4
16 Do you like work or held the relationship between you & ceylinco insurance company at long time?
1 2 3 4
REFERENCES
1. Lecturer notes
Customer service management
Mr. Jayapalan
51
2. F:\projet\44\Retention\Customer retention calculation
metrics.mhtANSWERS.COM (2009) customer retention
3. F:\projet\44\Retention\Customer Retention_ Definition from
Answers.com.mht
4. F:\projet\44\advantages\Customer Retention - Benefits.mht
5. http://www.dbmarketing.com/index.html
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![Customer Retention [Infographic] Customer Experience](https://img.dokumen.tips/doc/110x75/55b6dceebb61eb0c598b46c8/customer-retention-infographic-customer-experience.jpg)
