This study examines the influence of service reliability on customer satisfaction in the insurance industry in Kenya. The study was anchored on the Assimilation Contrast Theory and employed a descriptive research design. Primary data was collected using a structured self-administered questionnaire. Data analysis was conducted using descriptive statistics where the mean and standard deviation were determined. Data were analyzed in two levels, the customer level, and the entity level. The study employed the linear mixed effect models of structural equation modeling (SEM) considering the multi-level structure of the data collected. Results were presented in form of tables and path diagrams for the structural equation models. Service reliability was found to have a statistically significant influence on customer satisfaction (? =0.840, p-value= 0.027). The study found that there was a variation of levels of customer satisfaction across entities but this was not attributed to service reliability. The conclusion made was that service reliability significantly influenced customer satisfaction in the insurance industry in Kenya at the customer level but did not significantly influence the variations of customer satisfaction between the insurance companies.
The Insurance industry is essential to the economic course of every nation attaining sustainable growth and prosperity. However, the industry continues to experience a marginal growth of 2.5% compared to the global real term growth of 4%. This study analyzed the relationship between employee empathy and customer satisfaction in the Kenyan insurance industry. The study was guided by the causal research design. The study applied the linear mixed-effect models of structural equation modeling (SEM) considering the multi-level structure of the data collected. The study concluded that a client who perceives empathy from his/ her insurer’s employees is bound to have higher satisfaction than a customer who does not perceive empathy from their insurer. Employee empathy however, does not significantly affect the variations of customer satisfaction between the insurance companies.
This study sought to determine the influence of service assurance on customer satisfaction in the insurance industry in Kenya. The latent variable assurance was measured using four manifest variables namely, Employees instill customer confidence; Customers feel safe to transact with the company; Employee Politeness and Provision of adequate information on service requested. A descriptive research design was adopted and a multi-stage sampling technique was used to sample 400 policyholders from 19 composite insurance companies in Kenya. Primary data was collected using a structured questionnaire. A pilot test was conducted to check the reliability and validity of the questionnaire. Data analysis was performed using inferential statistics. R-Gui was the leading statistical software. The study applied linear mixed-effect models of structural equation modeling (SEM) considering the multi-level structure of the data collected. Multi-level analysis was adopted to determine whether service assurance contributed to the variation in levels of customer satisfaction across insurance companies. A significant fixed effect coefficient estimate of 0.696 was established, implying that increasing the levels of Service Assurance as perceived by a customer by one unit would increase the level of Customer Satisfaction by 0.696. The study concluded that a client who perceives Service Assurance from their insurer is bound to have higher satisfaction than a customer who does not perceive it. Employee Assurance, however, was found not to significantly affect the variations in customer satisfaction across the insurance companies. The study recommended that insurance firms invest in service assurance to achieve maximum customer satisfaction.
The Insurance industry has lately been associated with financial steadiness, security of government programs, enhancing trade and overall growth of a national economy. The industry however continues to experience very low penetration. Kenya has a penetration rate of 2.3% compared to South Africa's rate of 7.6%. Insurance firms in Kenya are under considerable pressure from their customers and the regulator to invest in service blue print as a measure of analysing the impact of their service quality which is a result of their service innovations and enhanced processes or systems which are supposed to improve customer satisfaction and hence profitability. This study analysed the relationship between service blue print dimension and customer satisfaction in the insurance industry in Kenya. The study adopted a causal research design. The unit of analysis was 17 licensed composite insurance companies in Kenya with a unit of observation of 400 policy holders sourced from insurance company records. Primary data was collected using a semi-structured questionnaire which was self-administered. R-Gui was the main statistical software. The study applied the linear mixed-effect models of structural equation modelling (SEM) considering the multi-level structure of the data collected. A significant fixed effect coefficient estimate of 0.154 was established, implying that increasing the levels of service blue printing as perceived by a customer by one unit would result into an increase in the level of Customer Satisfaction by 0.154. The study concluded that a client who perceives efficient and effective service processes from his/ her insurer is bound to have higher satisfaction than a customer who does not perceive efficient and effective service processes from their insurer. Service blue printing however, does not significantly affect the variations of customer satisfaction between the insurance companies. The study recommends that insurance industry firms invest in service blue prints as a strategy of achieving maximum customer satisfaction. Service blue print will improve interactions between customers and service providers by acting as a service lens and they should be developed as a service innovation technique that may enable discovery of potential innovations that may have otherwise been overlooked. The insurance company can adopt service blue print as a benchmark for accreditation standards.
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