| Abstract: | The aim of this research was to assess motor insurance claim service quality and its effect on
customer satisfaction in case of Abay insurance S.C. from the perspective of corporate
customers. To this end gap model of service quality with the application of SERVQUAL
instrument were used to measure corporate customers’ expectation and actual perception of
motor insurance claim service quality delivered in Abay insurance. The study used primary
sources of data. Primary data was collected from 290 selected sample corporate customers of
Abay insurance S.C. who claimed at least once through questionnaire. The study employed both
descriptive and inferential statistics to analyze the collected data from sample corporate
customers using SPSS version 22. The findings of this study shows that all five SERVQAUL
dimension have negative gap score, in that reliability dimension has the highest negative gap
score whereas empathy has lowest gap score, implying that corporate customers’ perceive less
than their expectation, suggesting corporate customers’ dissatisfaction with the claim service
provided by Abay insurance S.C. (AISC). The study also revealed that overall mean score
customers satisfaction of AISC is 2.79 which shows that customers are not satisfied by AISC
motor claim service since this value is below 3, the point of neutrality or adequate satisfaction
level. Furthermore, the findings of the multiple regression analysis shows that reliability,
assurance and empathy service quality dimensions have strong and significant effect on
corporate customers’ satisfaction. Accordingly, the conclusions drawn from the findings of this
study were that AISC was not providing quality motor claim service demanded by most
corporate customers, in the overall most corporate customers felt dissatisfaction in the motor
claim services of AISC and 3 out of 5 service quality dimensions have significant effect on
corporate customers’ satisfaction. The findings and conclusions of this study implied that AISC
is expected to go a long way in improving the quality of its motor claim service in order to
improve the satisfaction level of its corporate customers. Finally, the study suggest that AISC
need to improve all the five dimensions of service quality continuously giving more emphasis to
reliability, assurance and empathy dimensions to keep the motor claim services corresponded
with corporate customers’ point of view and hence to improve the level of their satisfaction. |
