THE EFFECT OF MOTOR INSURANCE CLAIM MANAGEMENT ON CUSTOMER SATISFACTION AT ETHIOPIAN INSURANCE CORPORATION

Abstract

The main aim of this study is to determine whether claim reporting, response to claim, towing damaged vehicle, damage assessment, repair handling & complaint management (motor insurance claim management process at EIC) significantly affect customer satisfaction. In this research conceptual framework, customer satisfaction is the dependent variable and motor insurance claim management processes are independent variables. The general population of the study is EIC customers holding comprehensive motor insurance cover and had claim experience found in the six districts residing in the capital city of Addis Ababa. there are 1,860 motor insurance customers holding comprehensive cover and had claim experience as of December 31, 2021.Out of this population a sample of 329 customers are selected through a proportionate stratified random sampling technique from the six districts of EIC. A mixed research design that combines both explanatory and descriptive research design is used. Data was obtained from both primary and secondary sources of data. To collect data, Survey questionnaires were distributed to a total of 329 customers’. Moreover, the six district directors of EIC were interviewed. To conduct data analysis both descriptive and inferential statistics through SPSS version 26 software and multiple regression models used. The findings from Both the correlation analysis as well as the multiple regression models have indicated that customer satisfaction is positively related to the four elements of the claim management process (towing damaged vehicle, damage assessment, repair handling & complaint management).Specifically, repair handling showed the strongest correlation as well as the highest coefficient in the regression analysis leading to the conclusion that repair handling is the most important element of the motor insurance claim management process to EIC customers. This is followed by towing damaged vehicle, damage assessment & complaint management processes, which were observed to be the second, third and fourth important element of the motor insurance claim management process with the respectively highest correlation and regression coefficients. The other two elements of the claim management process (claim reporting & response to claim) were seen to have negative relationship with customers’ satisfaction & statistically insignificant predictors of customer satisfaction.