Vol-5 Issue-5 2019 IJARIIE-ISSN(O)-2395-4396 10929 www.ijariie.com 747 A study of Factors Influencing customer buying behaviour towards Insurance companies Dhirendra Singh Parihar 1 , Manmohan Rahul 2 1 Department Of Management Studies, Sunrise University,Alwar,Rajasthan.India 2 Department Of Management Studies, Sunrise University,Alwar,Rajasthan.India Abstract 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 insurance companies. This study is an attempt to explore the factors that have a high influence on customer’s choice in Gurgaon 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 insurance companies. Keywords:- Insurance,potential customers, demographic variables,factors influencing customer satisfaction 1. Introduction The development of the economy depends on the soundness of its financial system. Insurance sector is one of the major players in financial system. Insurance sector in India is growing at a very fast pace. As a result of liberalization of Indian economy, new private sector insurance companies had came into existence which competed with both foreign insurance companies and Indian companies for market share. Insurance companies are competing not only with themselves but also with other financial institutions within the financial industry. With the entry of private sector insurance companies the number of insurance companies in all over the country has gone up. High level of competition is the most important factor in influencing the structure and activities of the insurance system around the globe. More and more insurance facilities are made available in every part of the country even to small cities, towns and rural areas. With the growing awareness among the people about the insurance, various services provided by the companies and availability of insurance facilities across the globe, the insurance sector is emerging very rapidly and there is a need to identify the main factors that affect customer‟s choice for a insurance companies.