Relative Positioning of The Life Insurance Brands - A Study Using Correspondence Analysis

Abstract

Life insurance industry in India has witnessed tremendous changes in the past decade, attributed to dynamic changes in micro and macro environment such as high competition, changing demographic profile of the customers, government regulations, product innovation and technology interface. Life insurance industry is evolved and transformed to a great extent, but still has a long way to go in terms of penetration and density. Although Life insurance Corporation of India (LIC) is a market leader, while competitors also have distinct competencies and made significant inroads in the market. It becomes imperative to examine the relative positioning of life insurance brands based on key service attributes. The correspondence analysis is used to develop perceptual map and determine the relative positioning of the life insurance brands with respect to salient attributes. The selected eleven service attributes are selected based on literature review. The study finds LIC, HDFC Life and ICICI Prudential are associated with positive corporate image and good distribution network. SBI Life and Tata AIA account are associated with positive customer experience. The study finds relatively homogenous segments based on proximity in perceptual map, generated using correspondence analysis. Life insurance organizations need to focus on the dimensions of corporate image distribution, and customer experience for improving relative positioning, subject to their distinct competencies and constraints