| Abstract: | The main aim of this thesis was to assess the effects and prospects of customer handling in
the insurance industry in Ethiopia with a particular reference at Nile Insurance Company
S.C as a case study. It tries to identify the level of customer satisfaction by measuring
customers’ perception with regard to quality service delivered by the insurance using the five
service quality dimensions which are Tangibles, Reliability, Responsiveness, Assurance and
Empathy plus three additional variables, i.e. Underwriting, Claims Service and Complaint
Handling. The study is basically a survey that used both quantitative and qualitative
approaches. For the purpose of data collection SERVQUAL model questionnaire was
adopted, pre-tested and personally administered to the targeted population by following the
appropriate ethical procedure. In total 100 respondents were sampled from the total
population of 15,936 customers of Nile Insurance S.C that are found in Addis Ababa City
branches, using the sample size determination table developed by Yamane, 1967. Out of the
distributed 100 questionnaires, 94 were returned constituting 94% response rate. More over
ten frontline customer service employees from the ten selected branches, one from each, and
four managers from both the head office and branches were also sampled. Out of the
distributed questionnaires to front line employees and interviews conducted with managers,
all were returned, which constituted 100%. The findings of this study showed that customers
of Nile Insurance S.C in Addis Ababa branches were moderately satisfied in the service
quality dimensions which showed expectations of customers’ perception exceed the actual
performance of the insurer. Therefore, it is recommended that Nile Insurance Company S.C
should give greater attention to improve its customer handling service quality and satisfy its
customers by meeting or exceeding customers’ expectation through assessing and improving
the gaps on all the service quality dimensions which will result in reputation of purchase,
positive word of mouth, and customer loyalty that can help the company to stay competitive
in the insurance industry and increase its market share, profit and its financial position |
