A study on factors influencing customer choice of life insurance in Labuan FT

Everyone is exposed to various risks. Future is very uncertain, but there is way to protect one's family and make one's children's future safe. Life Insurance companies help the people to ensure that their family's future is not just secure but also prosperous. This study titled "Study of Consumers Choice towards Life Insurance Policies" enables the Life Insurance/Takaful Companies to understand how consumers' preference and perception differs from person to person. How a consumer selects, organizes and interprets the brand image, product benefits, service quality or product quality of different Life Insurance Policies offered by various Life Insurance/Takaful Companies. The purpose of this paper is to evaluate customers' choice of life insurance in terms of brand image/reputation, product quality and services quality offered by the insurance/Takaful companies. Other than that, this paper also examines the relationship between the demographic factors towards choice of life insurance policies in the island mean. The study utilized the survey approach. The sample consisted of 80 respondents. From the findings, the results of this study underscore the need for insurance companies/providers to gear up customer service quality and needs improvement efforts towards the variable or components of quality. The study also revealed that the customers need a better product quality and benefits as these two variables are very significant and have positive relationship towards the customers' choice of life insurance. Nowadays, insurance companies are competing each other and as such need to have a strong and good reputation. The insurance sector in Labuan remains challenging and the insurance/Takaful companies need to bring innovative solutions to the customers while making them realize the value of those services provided. When clients realize that quality is something that cannot be compromised, an organization has to survive in the competitive market while managing high value service.