Policyholders perception towards life insurance regulations: A factor analysis

This research paper focuses on the perception of policyholders towards life insurance regulations and awareness about Insurance Regulatory and Development Authority of India. Primary data are collected through administering a structured questionnaire to life insurance policyholders in Hyderabad and Secunderabad cities, using simple random sampling technique. The methodology adopted for the purposes is factor analysis. The results showed that, 88.93 per cent of Policyholders in this sample are aware of Insurance Regulatory and Development Authority of India. In factor analysis, fifteen variables are reduced to two factors with high correlation values of variables in varimax factor loading method. Overall majority of policyholders believed that regulations are designed to protect policyholders from financial loss and showed high rate of financial literacy in this sample.