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Insurance sector in India is growing at a very fast pace. With the entry of more and more private sector insurance, the competition within the industry is becoming very intense. Competition in the country among the insurance companies is strong as there have been new entrants into the market. Thus customer satisfaction is a crucial issue for the insurance company management to retain and attract its potential customers. Insurance companies do not know the need of their customers and thus they lose their potential customers. Therefore, it is important to identify and evaluate factors that influence customer's choice for a insurance companies. This study is an attempt to explore the factors that have a high influence on customer's choice in Ajmer insurance industry, to find out which factors have more influence on customers and rank these factors according to the ratings given by the respondents for each factor. Demographic variables play a very important role in understanding customer's perception. Thus, the impact of demographic profiles was also assessed. A survey of 120 respondents were taken and analyzed to understand the factors that influence the insurance companies' selection decisions. The study relied on 29 factors using mean and factor analysis and these factors were extracted from the literature and personal interview. The findings revealed that according to the ranks given the most important factors that influence customers for selecting a insurance companies are computerization and online transactions, connectivity with bank , speed and efficiency in transactions, clear communication and the least important factors are influential marketing campaign, free gifts for customers, peer group impression etc. . In addition, factor analysis was used over 29 factors and the result showed that there were 9 key factors, which were determined by clubbing the similar variables, which majorly consider being most influencing factors for customer's choice of a insurance companies.

Factors Influencing Customer’s Choice For Insurance Companies- A Study Of Ajmer City