Insureds Perceived Service Quality Dimensions and Customers Satisfaction (The Case: Ethiopian Insurance Corporation Northern District)

The aim of this study was to investigate the relationship between service quality and customers satisfaction and its effect on loyalty with special emphasis of perception and expectation in some selected insurance companies at the Northern district. Data were collected using semi-structured questionnaire. A total of 120 customers were contacted to address the research question. After collecting the data the service quality was measured using four dimensions which were Access quality, Infrastructure quality, Responsiveness and Competence. Data were analyzed using descriptive analysis like mean, standard deviation and gap analysis. Respondents in the selected branches reported low levels of perceived service quality. However, compared to service quality of EIC, Nyala and Awash insurance reported better perceived service quality. In EIC insurance, Competence and Credibility dimensions are related to loyalty dimensions. In Nyala insurance, Responsiveness dimension is related to loyalty dimension. Finally, in Awash insurance, Responsiveness and Courtesy dimensions are related to loyalty dimensions. The selected insurance company managers should recognize the importance of service quality in service delivery and implement appropriate customer oriented strategies. The managers should recognize the importance of services quality and improve ability to address complaints and provide solutions to customers problems. Moreover, managers should work to improve the service qualities of their respective insurances to be competitive in the market.