Assessing Service Quality Factors for Building a Loyal Customer in Life insurance industry

Abstract

During the recent years, life insurance industry experienced great reforms to improve their market density and penetration. When it comes to provide service to the customers, they lack behind in resulting to customer dissatisfaction. Therefore there is a need to understand the quality of service required by the customers and meet their need successfully. Then it creates the loyal customers.After reviewing several specialized papers, the underpinnings of service quality are Tangibility, Reliability, Responsiveness, Empathy, Assurance, Helpfulness and Problem solving. As sample frame, personal administrated survey questionnaire with randomly selected 100 sample life insurance customers as unit of analysis are targeted to investigate their loyalty towards the life insurance industry. Responses were measured on a 5 point Likert scale ranging from 1 (Strongly Disagree) to 5 (Strongly Agree). A number of quantitative and qualitative methods including correlation analysis and regression were used to analyse the data Using SPSS version 23. According to the findings Tangibility, Reliability, Responsiveness, Assurance, Helpfulness and Problem solving have positive relationship with customer loyalty in life insurance industry. Assurance and Problem Solving highly relate with customer loyalty. That means Assurance and Problem Solving are the main issues of service quality towards customer loyalty. In order to build a loyal customer there is a need to improve the quality of the delivering services. Organizations that are aiming to nature loyal customers should pay close attention to issues of service quality