DETERMINATION OF KEY SUCCESS FACTORS FOR WINNING ACHIVEMENT OF INDIAN INSURERS : A PCA APPROACH

Indian insurance market is basically a seller’s market rather than buyer’s market as compared to anywhere else in the world. Indian Insurance Industry is lagging behind the other countries with respect to penetration, density and in terms of premium and profit volume. The important reason behind this is the poor understanding of the insurance concept and lack of awareness. Now a day’s most of the people of India are buying insurance as a tax saving instrument or due to an investment tool rather than seeing insurance as a risk mitigation option. During the last years, many researches were done in order to identify the critical success factors in Insurance industry in order to separate successful factors with unsuccessful ones. In this respect the factors necessary for commercial success guaranteeing them are declared as the critical success factors (CSFs). Critical success factors are the ones that are necessary for producing deliverable items considered by the customer or they are the properties, conditions or variables which can have a considerable influence on the success of the company. CSFs are used by organizations to give focus on a number of factors that help define its success. They help the organization and its personnel to understand the key areas in which to invest their resources and time. CSFs can be utilized in both the organization and the individual levels. Their identification is largely qualitative and can result in differing opinions in pinpointing them. Nevertheless, it is an approach that should be pursued as it provides value in giving due focus to a limited set of factors, which are deemed to be the most critical for an organization or individual.