service has become a distinct component of both product and service sectors and
with the developments in information technology many businesses find demanding
and knowledgeable customers. Several literature is found describing the
importance of service quality and its impact on customer satisfaction and
customer loyalty. An intensive review is conducted and a brief description of
some of the relevant studies is given here.
Bala et al. (2011)
have concluded that the results of the study indicate that a meaningful pattern
or a higher level of abstraction can be obtained from SERVQUAL in the new
context, although the original five dimension of the scale are not confirmed.
However, SERVQUAL would need to be customized for each industry.
Dinesh, Arivazhagan and Moorthy (2011) have concluded in their study on of the private life
insurer in India that Professional category respondents have high perceptional
level with regards to the financial credential of the selected company, Most of
the respondents have high perceptional level in servicing aspect of timely
reminder of dues, Most of the respondents have high satisfaction level of claim
admissibility and claim settlement and Salaried class respondents mostly
satisfied for taking insurance as a tax exemption tool.
Singh and Kumar (2011) have concluded that service quality in non- life insurance services has
significant effect on both customer satisfaction and purchase intention and
this effect is comparatively bigger on purchase intention rather than customer
has concluded that customer expects a lot when purchase the life insurance
product as it is a pure service. Both desired and adequate expectations vary
under different situation. It may be personal or influenced by the surrounding.
Apart from policy bond, claim, relationship building, technology are few core
area which have major impact on customers mind and finally expectations.
Multinational companies must consider various factors relating to customer
expectations and design service design accordingly.
has concluded that the life insurance sector in India has enlarged by more than
twice after the formation of IRDA. It is also observed that LIC is losing its
market share in favor of new entrants or private companies. Being the largest
insurance company in India, it is obvious that LIC has the largest strength of
insurance agents and insurance business. It is further seen that LIC is well
ahead of private insurers in terms of premium collection. It is worth noticing
that all private companies suffered huge losses, but again, only LIC earned
profits. It can be said that, LIC is the only life insurer in India that is
fairly settled but the market share of LICI is decreasing day by day. Private
players play a rivalry role in the insurance market. Further, it is observed
that there should be a large gap between new business premium amount and
renewal premium, but in case of Indian insurance business, this gap is too
narrow. Moreover, the operating expenses of both private and public players are
too high which needs to be minimized.
has concluded that among customers of life insurance companies, male and female
have not significantly different expectations with regard to the contents of
advertising. On the other hand male and female satisfaction for agent’s
services is significantly different. The study also revealed that salaried
persons, housewife, businessman and farmers expectations for contents of advertising
are significantly related.
Gulati et al. (2012) have concluded in that there exists a significant perceptual difference
among customers regarding overall service quality with their respective
insurance companies. With regard to gap analysis of customers’ expectations and
perceptions, it is found that the dimension of responsiveness accounted for
highest gap score following by Reliability and Tangibility which depicts that
insurance employees are less responsive to customers’ needs. Further it is
concluded that the customers are less satisfied by the services provided by
insurance companies. The gap between desirability and availability is an
alarming bell for some insurance companies.
Jain and Munot (2012) have concluded that a large number of households are not aware of the
importance of being insured and this awareness is found to be comparatively a
little better in households where members are insured rather than households
where members are not insured. Also, the misconceptions are also found to be
higher in uninsured households.
Kumar and Kumari (2012) have concluded that the existing public insurance service providers
should remain competitive by doing things better and faster, and by ensuring
cost effectiveness with performance. Large numbers of initiatives have been
taken by these public sector companies to compete with private sector
companies. But still the public sector companies need to reassess their present
status after having modified their approach & philosophy in the post- reform
period. Further it is concluded that today, in this liberalized world, in order
to sustain them, the insurance companies have to ensure quality products at a
competitive price. Companies can lower the price of the product by reducing the
cost. Their survival depends upon their performance in profitability,
productivity, efficiency and service quality.
Negi and Singh (2012) have suggested that the insurance companies should try to maintain the
timely and satisfactory service along with maintaining their reputation and
goodwill. The companies should pay more attention in timely and hassle free
settlement of the claims. Further customer relationship management should be of
utmost importance for such companies. Also, ‘Brand Loyalty’ has been rated
lowest among customers while selecting and purchasing insurance product which
signifies the healthy competition among the insurance industry.
Shameem and Gupta (2012) have concluded that Life insurance companies in India require new
strategies in order to survive and survive successfully. Companies instead of
focusing only on improving the variety of products needs to focus on targeting
new segments and implement innovative strategies in order to achieve sustained
growth and ensure profitability of business as well as growth of insurance
have identified certain major factors which play vital the role in developing
consumer’s perceptions towards Life Insurance Policies. These are Consumer
Loyalty, Service Quality, Ease of Procedures, Satisfaction Level, Company
Image, and Company-Client Relationship. Further study concluded that customers
have positive perceptions towards life insurance policies.
Pramod Kumara Singhal (2013) studied the service quality in Insurance sector taking
private companies of Haryana State. This study was based on the SERVQUAL model
covering 500 customers of private insurance companies of 7 districts of
Haryana. The study concluded that the people are still carrying a negative
impression towards the private insurance companies.
U., & Tominc, P. (2014) studied the
relationships among components of Insurance Companies and Services? Quality
through SEM approach. The sample size was 200 Slovenian users of insurance
services. The results indicated that higher perceived innovation of insurance
company was associated with higher perceived reputation of insurance company.
Shamsher Singh et al., (2014) studied the customer perception towards Service Quality
of Life Insurance Companies in Delhi NCR Region.
Qureshi and Bhat (2015) in their study of service quality, customer satisfaction and customer
loyalty in LIC in Srinagar district indicate that there is a service quality
short fall in all the six dimensions of service quality with Personalized
Financial Planning being the most important dimension of concern, followed by
Competence and Assurance.