This paper attempts to examine the impact of service
quality on customer satisfaction and firm performance in
Nepalese life insurance companies. Data are collected through
structured and self-administered questionnaire from 350
respondents of 19 life insurance companies which are based on
SERVQAL model. Descriptive and causal-comparative research
design have used to achieve the objectives and descriptive
statistics, correlation, as well as multiple regression models, have
been used to analyze the data. It is observed that reliability,
responsiveness, assurance, empathy, and tangibles have a
positive and significant impact on customer satisfaction and firm
performance. It is also found that responsiveness shows the
highest positive correlation with customer satisfaction and
performance in terms of ROA and assurance demonstrates the
least positive correlation with customer satisfaction and ROA