ANALYZING THE INFLUENCE OF CONSUMER AWARENESS ON PENETRATION OF GENERAL INSURANCE SERVICES IN TIER III AND TIER IV CITIES

Abstract

The study titled "Analyzing the Influence of Consumer Awareness on Penetration of General Insurance Services in Tier III and Tier IV Cities" adopts a cross-sectional survey design to investigate the relationship between consumer awareness and the penetration of general insurance services in Tier III and Tier IV cities. Data was collected from 260 consumers across 5 districts in these cities between 02 December 2021 and 12 January 2022. The researcher utilized Structural Equation Models (SEM) to examine the associations between consumer awareness and the sub-latents of penetration, including industry support perception, accessibility, and affordability. The Maximum Likelihood (ML) estimation method and the NLMINB optimization method were employed for parameter estimation, ensuring robustness in the analysis. The findings reveal that awareness significantly influences all three dependent variables. Industry support perception, accessibility, and affordability are positively correlated with consumer awareness. The study's outcomes have implications for insurance companies, highlighting the need to invest in awareness campaigns and tailored marketing strategies to enhance customer satisfaction and loyalty. Additionally, the research offers opportunities for future studies to explore other dimensions of customer behavior and investigate the effectiveness of various awareness strategies and channels to further enhance the insurance sector's development.