Influence of service quality on customer satisfaction in general insurance companies in Kenya

Abstract

Several studies have been done to demonstrate how service quality is connected to customer satisfaction in different sectors. There are however few studies aimed at examining the nexus between service quality and customer satisfaction in general insurance. Previous studies in the insurance industry in East Africa have shown that service delivery is not at its best and that customer satisfaction remains a challenge. Negative reputation, mistrust and ethical malpractices are notable challenges in the Kenya insurance industry. This study investigated the influence service quality on customer satisfaction in the general insurance sector using SERVQUAL model. The study was anchored on the Expectancy Disconfirmation Paradigm and Dissonance Theory as a supporting theory. The study philosophy was positivism which adopts a deductive and objective approach to research. A quantitative method with descriptive cross-sectional research design was adopted. A survey was conducted on a sample of 375 general insurance policyholders. Convenience sampling technique was used to reach informants. Structured questionnaires were used in collection of primary data. The instrument was checked for validity and reliability. Reliability of the instrument was tested using Cronbach’s Alpha. Statistical Package for Social Sciences (SPSS) version 20 was applied to analyze primary data. Descriptive analysis involved the use of means, percentages and standard deviations while deductive statistics incorporated Pearson correlation and multiple regression analyses. The findings established that Tangibility, Reliability, Responsiveness, Assurance and Empathy had positive and remarkable influence on customer satisfaction in general insurance companies in Kenya. Policymakers can consider the findings when developing policies that promote insurance inclusivity, education, and consumer protection. Regulatory bodies will be informed by the findings when enforcing market conduct supervision to safeguard consumer interests. Insurance practitioners can leverage on the identified service gaps to formulate necessary strategies to enhance service delivery. This research contributes to the existing theories on service quality and customer satisfaction and bridges the literature gap in general insurance studies.

Keywords: SERVQUAL, Customer Satisfaction, Service Quality, General insurance.