Customer perception, a business term, is a measure of how products and services supplied by a company
meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the
four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Customer
perception is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to
person and product/service to product/service. The state of satisfaction depends on a number of both psychological
and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other factors the customer, such as other products awareness about the insurance companies, most preferred area of investment by the customer,
problems faced by customers in terms of service, relationship between demographics and the amount of
investment and risk taking appetite and preference of customers in terms of different players in the
industry.
In terms of the awareness and safety, LIC is occupying the first position. The risk appetites of the
customers are mostly between medium and low. Most of the respondents are having insurance for the
purpose of life coverage. Mostly the demographics of the respondents have a significant relationship with
the amount of investment and risk taking appetite. The respondents mostly prefer the avenues of fixed
deposits and real estate for investment. ING Life insurance is ranked first in terms of service and returns.
Private life insurance companies except ING and HDFC don’t have the capability to compete with LIC in
all perspectives. Customers are facing difficulties in getting responses to their queries and it has been
ranked last among the various services provided by the ING Life.