In aggressive sale of business, insurance companies are experiencing a severe problem of "Lapsation" (non-continuation of premium payment), which is hindering the growth of life insurance business. Identify some (any fiv

Ganesan committee identified that the early lapsation of the life insurance policies is the combined effect of both the external and internal factors with some element of interaction between the two. The committee identified the following factors: External Factors Economic decision making of the policy. Economic Social Background. Availability of alternative investment option. Client specific features like Wealth and Savings, Education, Age, Gender, Location: Rural/ Urban, Financial difficulties, Resource Availability. Macro economic factors like Disposable income, Inflation, Government policies with regard to taxation, Fiscal incentives, Development of industrialized areas. All the above factors are beyond the control of an Insurance Company. The internal factors contributing to the lapsation of life insurance policies are : Product design and choices Types of plans, Mode of Premium payments, Policy Term. Marketing and Personal strategies Planning of business activities (budgets, time frames) Sales personnel agents development officers, branch marketing supervisors, Customer education, Market research, HRD linked to marketing (recruitment training appraisal, incentives and discounts), Policy mismatch (lack of need based selling), Absence of insurance awareness/consciousness. Domination of Tax concern rather than risk management concern Lack of agency professionalism while selling insurance policies', Remuneration/commission structure for the field force (High commission for the first year premiums and low commission for renewal premiums), Knowledge gap among the field personnel and no quality consciousness in training programs for the field force Business target Structure(focuses mostly in the month of March) High agent turnover/poaching/churning the policies due to increased competition in the market, Lack of after sales service.