Challenges Faced by the Insurance Agents to Penetrate in the Rural Markets: Explored through Factor Analysis

Insurance is an integral part financial services system and recognized as a cornerstone of a country's financial health and symbol of progress. Insurance provides a financial security to the citizens and offers valuable investment advices and serves an effective step towards both individual and national financial stability. The concept of globalization and liberalization has deeply influenced the insurance sector worldwide. Due to globalization of insurance market, many foreign insurance companies entered India and it benefited both the insurance companies and the insured. Insurance companies are focusing on customer satisfaction through increased customer choice and lower premiums, by ensuring the financial security of the insurance market. Insurance companies are now targeting upon the customers by giving them a basket of returns with a mission to make them delight and satisfied. Marketing of life insurance in rural areas is very important. Focus should be given on improvement of services given by the rural agents. Insurer should spread more awareness and relax the product complications to make it easier to understand. Selling the insurance products to the rural people is not an easy task for the insurance agents. Lack of awareness of insurance, Lack of disposable income among the public, unexpected demand, Lack of confidence among the people, Information problems, Difficulty in giving promotional efforts etc are some of the challenges faced by the insurance agents. So this article focuses on the major challenges faced by the insurance agents to penetrate in the rural markets.