Abstract:
Insurance appears simultaneously with the appearance of human society.
In natural economies, which are the most ancient form economy, insurance was defined
as helping each other. This type of insurance has survived to the present day where
modern money economy with its financial instruments is widespread. Insurance is
basically a protection against a financial loss which can arise on the happening of an
unexpected event. A well-developed and evolved insurance sector is needed for
economic development as it strengthens the risk taking ability. In Sri Lanka, the
insurance industry reported an overall gross written premium of Rs. 51 billion and it
represent 1.46% of the GDP of 2009.
People today have more insurance needs and as a result insurance has become
an important part of stability in the event of a loss. In view of current volatility in the
market, it is vital to conduct a study to identify the factors that are exploring the clients'
perception towards the image of Insurance Company. Therefore, this study focuses on
how client select an insurance company and bow they perceived the image of different
insurance companies in Sri Lanka. This study was carried out in five districts, namely
Colombo, Kandy, Kurunegala, Galle, and Bandarawella. 250 people (50 from each
district) were interviewed using a structured questionnaire. The study found that the
company ownership, the number of years in the business, and the financial stability are
significantly influenced on the image of an insurance company. Further, customer
focused company operation, quick claim settlement, 24 hrs online services, and
effective call centers identified as the absolutely essential factors in selecting an
insurance company.
