Antecedents of Policyholder Satisfaction and Loyalty in Life Insurance Services: An Empirical Assessment from Ahmedabad, Gujarat

Abstract

In the Ahmedabad (INA) context, this study investigates factors which are causing policyholder dissatisfaction and attrition in life insurance service. It tries to find out the effect of the four dimensions of Service Quality, namely trust, effectiveness of claim settlement, and transparency of the policy under study on policyholder satisfaction. A structured questionnaire was given to 105 respondents life insurance policy holders and statistical procedure namely correlation analysis, multiple regression analysis and One-Way ANOVA statistical procedures were used in data analysis. The results indicate that there is a significant positive relationship between the dimensions and aspects of service quality and the satisfaction of policyholders such as providing of the service punctually, courtesy of the employees and providing accurate policy information. The regression results also show that three factors have a significant impact on satisfaction: trust, claim settlement efficiency and policy transparency, the latter being the most significant. There was also no difference between the various age groups. As the report reveals, a customer-focused service approach is critical for equipping life insurers with strategies that may improve their customer satisfaction, retention, and customer loyalty and, ultimately, their long-term competitiveness.