The Effect of Motor Claim Service Quality on Customer Satisfaction: The Case of Abay Insurance Company

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.