ASSESSMENT OF CUSTOMER SATISFACTION ON MOTOR INSURANCE SERVICES: THE CASE OF ETHIOPIAN INSURANCE CORPORATION

Abstract

The basic objective of this study is to assess the level of motor insurance customer satisfaction in relation to services delivered by the Ethiopian Insurance Corporation. The study was conducted based on a descriptive study. For the purpose of this study, a sample of 360 respondents (clients of the company who are motor insurance policy holders) were drawn, using systematic random sampling from branches resided in the capital city (Addis Ababa) where majority of the total population of the study is found.. The SERVQUAL dimensions which have been used in the study is strongly proved to be the basic predictor of the quality of service measurement and an indicator of the feelings of customers (Parasuramanet.al ,1994). The basic five SERVQUAL dimensions have been modified to suit with the nature of insurance service provision in order to make the study more reliable.(Tangibility, Reliability, Responsiveness, Assurance, Empathy, Underwriting quality, Claim service), this is due to the fact that the underwriting quality and claim service provisions are the main frame of reference to retain and attract new customers in any insurance business. Moreover, to have valid conclusion, some statistical measurements like average, frequency charts and graphs were used as the study is a descriptive study, it had been designed and intended just to indicate the level of satisfaction/dissatisfaction of motor insurance policy holders in EIC. The majority of the findings of the study revealed negative results. , it can however be concluded that customers were not satisfied with the service delivery of EIC. Hence, the findings will provide the company with solutions to enhance its performance and increase the number of its customers and also it directs the company to re-evaluate its policies and undertake proper monitoring towards improving its operational activities in order to assure better understanding of the customers. The data obtained from primary and secondary sources are collected through questionnaire, observation and interview. - To insure customer retention and improve on competitiveness, EIC should, however regularly assess service delivery process to satisfy their clients