Relationship between post purchase services by private companies agents and first year policy lapsation rate in life insurance selling

The purpose of this paper is to study the relationship between first year policy lapsation rate and service quality provided by agents of private life insurance companies. It check, whether first year policy lapsation rate differences is significant on post purchase services of intermediary.

The paper presents a survey of the agents of private life insurance companies of Gujarat under descriptive- cross sectional design. The statistical tools like exploratory factor analysis, confirmatory factor analysis and MANOVA have been used.

First year policy lapsation rate differences of Private Companies Agents is not found significant on post purchase services. It is significant for exceptional services only.

The paper will be of value to those interested in insurance distribution and specifically about agents performance of private life insurance companies. It is suitable for academics and practitioners alike.