Post-Purchase Satisfaction on Life Insurance Policies: Evidence from Nepal

Abstract

The study examined the factors influencing the post-purchase satisfaction (PS) of life insurance policies in Nepalese Insurance Companies (NICs). It assessed the relationships between agent behavior, customer service, company trust and image, and client satisfaction with NICs after purchasing a policy. This study followed convenience sampling techniques for data collection from Kathmandu Valley residents about their post-purchase experiences with life insurance policies. Based on a survey of 400 respondents, the study's findings demonstrated that agent behavior (β= 0.243, p = 0.000), customer service (β = 0.153, p = 0.000), company trust and image (β= 0.397, p = 0.000) positively impact post-purchase satisfaction. Such results indicated that the insurance policyholders perceived the role of agents as their means of contact with the service they bought. They also viewed the requirement of ongoing interaction with the agents. Furthermore, policyholders' satisfaction with customer service highlighted the importance of understanding customer needs and expectations and the need to tailor products and services accordingly. Theoretically, the study implies attribution theory, which states that customers' satisfaction or dissatisfaction with their insurance policy can be attributed to various factors, such as the insurer's reputation, policy features, premiums, or claims settlement procedure. In practice, this entails that NICs should identify the areas in which consumers place the most importance and enhance their performance in those areas. Moreover, it demonstrates how a company's reputation influences policyholder satisfaction, how agents behave, and how well they treat consumers. Therefore, this study is significant for managing the expectations of policyholders and ensuring that the products and services meet the target market's requirements.