Exploratory Factor Analysis on Bancassurance Attributes

Abstract

Background: The rising market competition and demand for innovative and need based products by customers have compelled the banking industry to look for alternative cost-effective product and services. The integration of insurance with banks will contribute more to the economy. Purpose: Bancassurance has a tremendous acceptance and growth across the nation. It is the need of banks to know their customer perceived value over their various bancassurance products and based upon the outcomes, the bancassurance product may be adjust to the needs of beneficiaries. Design/Methodology/approach: The study is an empirical and descriptive in nature. The primary data is collected for the study through a well-designed structural questionnaire. Overall, 500 questionnaires were distributed and received from the sample respondent under the census method. Findings: It is observed that the impact of reliance factor on Core factor, Comfort factor and Support factor were high. Whereas, the impact of Benefit factor on Value, Core, Support and Comfort factor was low... Conclusion: Based on the result and discussion, it is concluded that the management and administrators to pay special attention on Benefit measures of bancassurance product and service such as, “Assured return” and “Provide a special benefit” to satisfy the beneficiary.