A STUDY ON FACTORS INFLUENCING INSURANCE POLICY SELECTION

Abstract

Insurance plays an important role in protecting individuals and families from financial loss caused by unexpected events such as illness, accidents, property damage, or death. In today’s uncertain environment, people are more aware of the need for insurance, but choosing the right insurance policy has become a complex decision. This study examines the key factors influencing the selection of insurance policies among individual policyholders. With the growing awareness of financial security and risk management, insurance has become an important tool for personal and family protection. The study focuses on understanding how factors such as premium amount, coverage benefits, claim settlement process, insurer reputation, customer service quality, and agent influence affect policyholders’ decision-making. Primary data were collected through a structured questionnaire administered to respondents from different age groups, income levels, and educational backgrounds. Descriptive analysis and simple statistical tools were used to interpret the data. The findings reveal that premium affordability and coverage benefits are the most significant factors influencing insurance policy selection. Trust in the insurance company and ease of claim settlement also play a major role, while advertising and peer influence have a moderate impact. The study highlights the importance of transparent policy terms and effective communication by insurance providers. The results provide useful insights for insurance companies to design customer-oriented products and improve marketing strategies. The study also helps policymakers understand consumer behavior in the insurance sector, thereby supporting better regulation and awareness programs. Overall, the research contributes to a clearer understanding of policyholder preferences and decision-making patterns in insurance selection.