ASSESSMENT OFSERVICE QUALITY AND CUSTOMER SATISFACTION IN CLAIM SERVICE AT NYALA INSURANCE SHARE COMPANY

Abstract

This research aimed at assessing service quality and customer satisfaction in claim service at Nyala Insurance Share Company (NISCO). It also examined the influence of quality service towards customer satisfaction. The SERVQUAL model was used to determine customers’ perception of service quality at NISCO. Both descriptive and correlation analysis were used in the study describe the existing situation and to understand the relationship between service quality dimensions and customer satisfaction. In addition to know the relationship between overall service quality and customer satisfaction. The researcher collected sample data from 285client of NISCO chosen based on convenient sampling technique. Data were analyzed by descriptive statistics and Pearson correlation analysis. All the service quality dimensions showed a negative confirmation result indicating that the service quality at NISCO is below the customers’ expectation. Moreover the study indicating that customers of NISCO are less satisfied by its service. The negative confirmation for tangibles is the high-est score that calls for the NISCO managements’ immediate action since the improvement in this dimension significantly changes the service quality and customers satisfaction as well. The researcher recommended that the insurance should invest on the knowledge and skill of personnel to enhance the skill and quality of the service providing staff. By doing so the in-surance could have sustained competitive advantages as the human aspect of an organization is not easily imitated by the competitors. Secondly, it should also invest in the physical evi-dence of the service, the tangible dimension.