Article Sidebar
Service Quality on Claims Management for Customer Retention in the Insurance Sector: A Case of National Insurance Company (T) Limited
Main Article Content
Abstract
Providing quality services to any organisation is a vital and noticeable element that customers need to see. With insurance firms, specifically claim management departments, providing services of desired quality creates much attention, leading to customer retention. The current study assessed service quality's influence on claims management and customer retention in the Insurance sector. It highlights how empathy, responsiveness and assurance in the claim management department influence customer retention. The study involved a total sample size of 120 respondents, 105 filled out questionnaires, and 15 were interviewed. A purposive sampling method was employed to obtain a sample of 120 respondents, where the target was to reach only those who had the necessary information for the study. A cross-sectional research design was employed and questionnaires and interviews were used for data collection. Data analysis was done descriptively, then multiple linear regression was used to find the relationship between service quality and customer retention. Findings from regression analysis showed that empathy and responsiveness had a positive significant effect on customer retention. In contrast, assurance did not show any statistically significant effect on customer retention. It was further revealed that insurance companies provide quality claims management services.
Article Details
References
Abdul-Qadir, A. B., Abubakar, H. S., & Utomi, Q. A.R. () Impact of Service Quality on Customer Retention of Listed Food and Beverages Companies in Kaduna State. Gusau International Journal of Management and Social Sciences, 4(1), 47-63.
Adrian, H. T., Muskat, B., & Johns, R. (2019). "The role of empathy in the service experience". Journal of Service Theory and Practice, 10, 1108https://doi.org/10.1108/JSTP-10-2018-0221.
Angima, C. B., & Mwangi, M. (2017). Effects of Underwriting and Claims Management on Performance of Proper-ty and Casualty Insurance Companies in East Africa. European Scientific Journal,13(13), 358-373. https://doi.org/10.19044/esj.2017.v13n13p358
Anubav, A.M. (2010). Factors affecting customer satisfaction and their relative importance in the Retail banking sector: An empirical study. IUP Journal of Management Research, 9(3), 6-23.
Ashturkar, P. B. (2014). Comparative Study of Effectiveness of Claims Settlement Operations in Indian Life Insur-ance Companies. International Journal of Advance Research in Computer Science and Management Studies, 2(), 148-155. 10.4236/ajibm.2018.89129
Ayub, B., Isyaka, M. S. & Azuoonwu, A. G. (2020). Impact of Claim Settlement on Performance of General Insur-ance Businesses: Evidence from Federal Capital Territory, Abuja. International Journal of Managerial Studies and Research, 4 (1).
Bakhary, N. A., Ibrahim, A., & Ismail, N. A. A. (2013). Critical review on improving the claim management process in Malaysia. Journal of Education and Vocational Research, 4(7), 214-218.
Beer, I.C., Mostert, F., Mostert, J. (2015). The Claims Handling Process of Engineering Insurance in South Africa. Risk Governance and Control: Financial Markets and Institutions, 5(2), 15-21. https://rb.gy/9uiaj7
Boakye, K. G., Blankson, C., Prybutok, V. R., & Qin, H. (2017). An Assessment of National Healthcare Service De-livery: A Ghanaian Illustration. International Journal of Quality & Reliability Management, 34(5), 649-666. https://www.researchgate.net/publication/315342396
Bove, L. (2019). Empathy for Service: Benefits, Unintended Consequences, and Future Research Agenda. Journal of Services Marketing, 33(10), 2018-0289.
Capgemini (2011b). Claims system migration and enhancement cuts costs by $ 15 million and improves customer relationships. USA: Computer Sciences Corporation.
ChangHyun Jin., & JingYun Zeng. (2021). The Role of Service Provider’s Rapport Behavior on Customers’ Empa-thy. Research Square, 2(12), https://doi.org/10.21203/rs.3.rs-1154220/v1.
Damas, J. (2017). Effectiveness of service quality in customer retention in banks: A case of access bank-Mwanza city. A Dissertation Submitted in Partial Fulfillment of Requirement for the Award of Master of Business Administration (MBA-Corporate Management) of Mzumbe University.
Davis, M. M., Acquilano, N. J. & Chase, R. B. (2018). Fundamentals of Operations Management, McGraw Hill/Irwin, New York.
Dhar, P. (2019). Claim settlement mechanism and Indian health insurance sector: a critical insight. A Blind Review & Refereed Quarterly International Journal. 7(23): 1647-2349 www.iaraindia.com
Fida, B. A., Ahmed, U., Al-Balushi, Y., & Singh, D. (2020). Impact of Service Quality on Customer Loyalty and Customer Satisfaction in Islamic Banks in the Sultanate of Oman. Sage Open, 10(2).
Getnet, B. (2020). The Impact of Service Quality on Customer Satisfaction in Case of Selected Insurance Compa-nies in Bale Robe Town. Research on Humanities and Social Sciences, 10(11), 40-48. www.iiste.org
Harriet, N., Arthur, N., Komunda, M. B., & Mugizi, T. (2024). Service Quality, Customer Loyalty and Customer Re-tention among Private Health Care Services in Mbarara City. Open Journal of Social Sciences, 12, 101-126. https://doi.org/10.4236/jss.2024.121008
Husda, N. E. (2017). Customer Value And Customer Satisfaction As Mediation Of Mis And Service Quality to Brand Trust and Reputation of Private Universities in Kepulauan Riau Province. 3rd International Con-ferences on Information Technology and Business (ICITB). https://www.researchgate.net/publication/326066051
Jere, K. B., & Banda, D. E. (2019). Weaknesses in the Insurance Claims Management Processes: A Case of Zambia. International Journal of Innovative Research in Science, Engineering and Technology, 8 (6), 6995-7003. 10.15680/IJIRSET.2019.0806076
Johnson, E. C., & Karlay, J. S. (2018). Impact of Service Quality on Customer Satisfaction: Liberia Revenue Au-thority. (Master Thesis in Business Administration, University of Gävle). Faculty of Education and Busi-ness Studies. https://www.diva-portal.org/smash/get/diva2:1246475/FULLTEXT01.pdf
Kalia, P., Kaushal, R., Singla, M., & Parkash, J. (2021). "Determining the role of Service Quality, Trust and Com-mitment to Customer Loyalty for Telecom Service Users: A PLS-SEM Approach". The TQM Journal, 33(7), 377-396. https://doi.org/10.1108/TQM-04-2021-0108
Khamis, A. M., & AbRashid, R. (2018). Service Quality and Customer’s Satisfaction in Tanzania’s Islamic Banks: A Case Study at People’s Bank of Zanzibar (PBZ). Journal of Islamic Marketing, 9(6), 884-900. www.emeraldinsight.com/1759-0833.htm
Kitila, (2017). Assessment of Customer Perception on the Usage of e-banking Services in Tanzania: A case of CRDB Bank PLC, Morogoro Branch. A Dissertation Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of Master of Business Administration (MBA)-(Corporate Management) of Mzumbe University.
Lyimo, H. C. (2014). Legal and Practical Problems Relating to Settlement of Insurance Claims in Tanzania: Un-pulished Masters Thesis of the Open University of Tanzania.
Marcos, A.M.B.F. and Coelho, A.F.M. (2022). Service quality, customer satisfaction and customer value: holistic determinants of loyalty and word-of-mouth in services. The TQM Journal, 34(5), 957-978.
Mohamed, E., Jafari, P., & Hammad, A. (2022). Mixed Qualitative–quantitative Approach for Bidding Decisions in Construction. Engineering, Construction and Architectural Management, 29(6), 2328-2357. https://www.emerald.com/insight/0969-9988.htm
Neema, J., & Jatav, S. (2017). Determinants of Customer Retention in Health Insurance Sector. International Jour-nal of Research and Innovation in Social Science (IJRISS),1(2), 6-10. https://ssrn.com/abstract=3673740
Nnko E., & John E. (2022). Learning Orientation and Customer Retention Practices in Micro and Small Enterprises: Lessons from Agro-processing Firms in Tanzania. International Journal of Small Business and Entrepre-neurship Research, 10(3), 58-78. https://tudr.org/id/eprint/1442/1/Learningpercent 20Orientation.pdf
Ntwali, A., Kituyi, A., & Kengere, O.A. (2020). Claims Management and Financial Performance of Insurance Com-panies in Rwanda: A Case of SONARWA General Insurance Company Ltd. Journal of Financial Risk Management, 9, 190-210. 10.4236/jfrm.2020.93011
Ofori-Attah, H.E.B. (2012). The Effects of Slow Claims Settlement on the Sales and Marketing of Insurance Prod-ucts: A Case Study of Enterprise Insurance Co. Ltd. (Eic)—Takoradi Branch. An M.Sc. Thesis, Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi.
Ogondi, R. M., & Kiriri, P. (2018). Impact of Assurance and Responsiveness Dimensions on Customer Satisfaction in Higher Education Sector: A Case of Universities in Kenya. Journal of Public Policy & Governance, 2(2), 65-84.
Oyedokun, G. E., & Gabriel, F. G. (2018). Effects of Claims Management on Profitability of Listed Insurance Com-panies in Nigeria. American Journal of Management, 18(5), 37-45.
Oyetunji, O. I., Adepoju, J. A., & Oladokun, R. A. (2021). Poor Claims Settlement and Demand for Insurance Poli-cies in Nigeri. Journal of Research in Humanities and Social Science, 9(8), 11-18.
Parasuraman, A., Zeithaml, V.A. & Berry, L.L. (1985), “A Conceptual Model of Service Quality and its Implications for Future Study”. Journal of Marketing, 49(10), 41-50.
Parasuraman, A., Zeithaml, V.A. & Berry, L.L. (1988). “SERVQUAL: A Multiple Item Scale for Measuring Cus-tomer Perceptionsuality”. Journal of Retailing, 64, 2-40.
Rahman, M. S., Khan, A. H., & Haque, M. M. (2012). A Conceptual Study on the Relationship Between Service Quality Towards Customer Satisfaction: Servqual and Gronroos's Service Quality Model Perspec-tive. Asian Social Science, 8(13), 201.
Radhakrishnan, G. (2014). Sampling in Mixed Methods Research. International Journal of Advances in Nursing Management, 2(1), 24-27. https://www.researchgate.net/publication/338517161
Rendek, K., Holtz, J., & Fonseca, C. (2014). The moment of Truth: Claims Management in Microinsurance, Micro-insurance Paper no 28, (Geneva, ILO).
Rolo, A., Alves, R., Saraiva, M., & Leandro, G. (2023) The SERVQUAL instrument to measure service quality in higher education. SHS Web of Conferences 160 (01011), 11 https://doi.org/10.1051/shsconf/202316001011
Sainfort, F., & Cadet, F. (2023). Service quality in health care: empathy as a double-edged sword in the physician–patient relationship. International Journal of Pharmaceutical and Healthcare Marketing, 17(1),115-131.
Souca, M. L. (2011). SERVQUAL–Thirty Years of Research on Service Quality with Implications for Customer Satisfaction. Marketing from Information to Decision, (4), 420-429.
Souca, M. L. (2011). SERVQUAL – Thirty Years of Research on Service Quality with Implications for Customer Satisfaction. In I. Plăiaş (Ed.), R. Ciornea (Ed.), International Conference “Marketing from Information to Decision” 4th Edition, 420–429.
Sukmawan, R., & Zulganef, Z. (2023). The Influence of Insurance Service Reputation, Customer Relationship Management, and Price Attractiveness on Insurance. Service Customer Customer Experience: A Literature Review. International Journal of Business, Economics and Social Development, 4(1), 32-37.
Tanzania Insurance Regulatory Authority (TIRA). (2018). United Republic of Tanzania Tanzania Insurance Regu-latory Authority, Annual insurance market performance report. https://www.tira.go.tz/uploads/documents/sw-1702461457-TiraAnnualReport2018.pdf
TIRA. (2021). United Republic of Tanzania: Tanzania Insurance Regulatory Authority, Fourth Quarterly Statis-tics ended December .021.
Tanzania Insurance Regulatory Authority (TIRA). (2022). United Republic of Tanzania, Tanzania Insurance Reg-ulatory Authority United Republic of Tanzania Tanzania Insurance Regulatory Authority, Annual Insur-ance Market Performance Report Ended 31st December 2022. https://rb.gy/1bkgp6
Tanzania Insurance Regulatory Authority (TIRA). (2024). United Republic of Tanzania: Tanzania Insurance Sec-tor Market Report. February 2024. https://rb.gy/vvl3gx
Torres, E. N. (2014). Deconstructing Service Quality and Customer Satisfaction: Challenges and Directions for Fu-ture Research. Journal of Hospitality Marketing & Management, 23(6), 652-677, https://doi.org/10.1080/19368623.2014.846839.
Tsai Tan, A. H., Muskat, B., & Johns, R. (2019). "The role of Empathy in the Service Experience". Journal of Ser-vice Theory and Practice, 29(2), 142-164. https://doi.org/10.1108/JSTP-10-2018-0221.
Twum-Darko, M., & Abrahams, R. (2023). Customer relationship management systems for Customer Retention in a life insurance organisation in South Africa. Eureka: Social and Humanities, 2, 3–15. https://doi.org/10.21303/2504-5571.2023.002751
URT. (2012). Annual Insurance Market Performance Report: For a Year Ended 31 December 2012, Tanzania In-surance Authority (TIRA).
URT. (2017). Annual insurance market performance report: For a year ended 31 December 2017, Tanzania Insur-ance Authority (TIRA).
Uyoga, D., & Lagat, C. (2019). Relationship Between Customer Responsiveness, Service Performance and Satisfac-tion Among Airline Passengers in Kenya. Journal of Emerging Trends in Economics and Management Sci-ences (JETEMS), 10(2):61-69.
Valtola, V. (2019). A Study of Customer Retention. Degree Thesis International Business, Arcada University of Ap-plied Sciences, Finland. https://rb.gy/36u5n5
Venetis, K.A. & Ghauri, P.N. (2004),"Service Quality and Customer Retention: Building Long-term Relationships". European Journal of Marketing, 38(11), 1577– 598.
Vlaev, I., Uttamlal, T., & Kudrna L. (2020). Social Care Insurance: A Review of Psychological Influences on Up-take. Front Public Health, 8. https://doi.org/10.3389/fpubh.2020.564471 https://doi.org/10.3389/fpubh.2020.564471.
Zeithaml, V.A & Bitner, M.J. (2003). Services Marketing, McGraw Hill, Singapore.