Page 15 - Life Insurance Today December 2017

Prudential witnessed downfall to more than half times indicates that there is significant difference between LIC
during the period under the study. of India and ICICI Prudential in terms of life micro
insurance.
The contribution of life micro insurance business to total
business is low in LIC of India as on an average it is 7 Concluding Remarks
percent approximately while it is about 27 percent in ICICI
It may be concluded from the above analyses that both life
Prudential. 2011-12 and 2012-13 witnessed high insurers have procured rural business by offering life micro
contributions in life micro insurance new business by both insurance, however, LIC of India has shown better results
life insurers. Thus, it is evident that ICICI Prudential has
as compared to ICICI Prudential in terms of compound
higher contributions in rural market as compared to LIC of annual growth rate, mean and growth index. But, the
India. So far as number of policies issued is concerned, LIC
contribution made by LIC of India to total business is lower
sold 5 times more than ICICI Prudential.
as compared to ICICI Prudential. Further, it is also clear that
there is significant difference between LIC of India and
Hypothesis Testing ICICI Prudential Life Insurance in terms of life micro
H : There is no significant difference between LIC of India insurance under new business during the period under the
0
and ICICI Prudential in terms of number of life micro study.
insurance policies issued under new business.
It is suggested to LIC of India to enhance the proportion
H : There is significant difference between LIC of India and of life micro insurance to total business as rural folk
1
ICICI Prudential in terms of number of life micro insurance constitutes a major portion of the population in India. LIC
policies issued under new business. of India should target rural market more effectively. There
is a great challenge before ICICI Prudential to regain its
Table 2 reveals about the independent sample t-test growth rate as it is declining. At the end of ten years its'
applied for the performance comparison of LIC of India and life micro insurance business is standing at more than fifty
ICICI Prudential. Levene's test for equality of variances percent downfall. Therefore, ICICI Prudential needs to
through F-test shows the significance value .001 < .05 focus on its' boosting the number of policies issued. ICICI
which denotes that variances are not equal. Further, under Prudential needs to widen its market network in rural India
t-test null hypothesis is rejected and alternate hypothesis and should adopt localised ways of promotion and
is accepted as the significance value is .006<.05 which distribution in the concerned market.

Table 2: Independent Samples Test

Levene's Test
for Equality of t-test for Equality of Means
Variances
F Sig. t df Sig. Mean Std. Error 95% Confidence Interval of the
(2-tailed) Difference Difference Difference
Lower Upper
Equal
variances 17.897 .001 3.141 18 .006 1484400.50000 472555.87949 491597.43754 2477203.56246
assumed
Equal
variances 3.141 9.329 .011 1484400.50000 472555.87949 421121.50802 2547679.49198
not assumed
Source: Computed from SPSS 17

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Life Insurance Today December 2017 15

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