Impact of Service Quality on Customer Satisfaction and Firm Performance in Nepalese Life Insurance Companies

Abstract

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