ASSESMENET ON CUSTOMER SATISFACTION AND LOYALTY AMONG CUSTOMERS OF INSURANCE COMPANIES: IN CASE OF NYALA INSURANCE S.CO

Abstract

The liberalization of the economic system in Ethiopia enabled the emergence of private insurance companies and have created competitive environment in the insurance industry. This study focused to assess the customer satisfaction & loyalty among customers of Nyala insurance s.c. Accordingly, appropriate research questions were postulated to guide the research. The study adopted a purely descriptive approach. The SERVQUAL instrument was incorporated into a detailed questionnaire to solicit information from clients. The data collected from 311 questionnaires were analyzed using gap score, statistical tools such as mean and correlation analysis. The gap score between perception and expectation of customers of the insurance companies showed that there is a negative gap score in all service quality dimensions meaning those customers expectations exceeds their perception. The study also indicated that the five service quality dimensions have positive and significant relationship with loyalty. The study showed that the selected service centers (branches) located in Addis Ababa were not providing the level of service quality demanded by customers. The findings suggested that the insurance companies need to improve all the dimensions of service quality.