Service quality on claims management for customer retention in the Insurance sector: A case of National Insurance Company (T) Limited

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. Thus, insurance companies in Tanzania need to increase empathy and responsiveness practices to retain their customers and save costs.