Customer and customer loyalty. An intensive review is

Customerservice has become a distinct component of both product and service sectors andwith the developments in information technology many businesses find demandingand knowledgeable customers. Several literature is found describing theimportance of service quality and its impact on customer satisfaction andcustomer loyalty. An intensive review is conducted and a brief description ofsome of the relevant studies is given here.Bala et al. (2011)have concluded that the results of the study indicate that a meaningful patternor a higher level of abstraction can be obtained from SERVQUAL in the newcontext, 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 lifeinsurer in India that Professional category respondents have high perceptionallevel with regards to the financial credential of the selected company, Most ofthe respondents have high perceptional level in servicing aspect of timelyreminder of dues, Most of the respondents have high satisfaction level of claimadmissibility and claim settlement and Salaried class respondents mostlysatisfied for taking insurance as a tax exemption tool.

Singh and Kumar (2011) have concluded that service quality in non- life insurance services hassignificant effect on both customer satisfaction and purchase intention andthis effect is comparatively bigger on purchase intention rather than customersatisfaction.Barik (2012)has concluded that customer expects a lot when purchase the life insuranceproduct as it is a pure service. Both desired and adequate expectations varyunder different situation. It may be personal or influenced by the surrounding.Apart from policy bond, claim, relationship building, technology are few corearea which have major impact on customers mind and finally expectations.

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Multinational companies must consider various factors relating to customerexpectations and design service design accordingly.Das (2012)has concluded that the life insurance sector in India has enlarged by more thantwice after the formation of IRDA. It is also observed that LIC is losing itsmarket share in favor of new entrants or private companies. Being the largestinsurance company in India, it is obvious that LIC has the largest strength ofinsurance agents and insurance business. It is further seen that LIC is wellahead of private insurers in terms of premium collection. It is worth noticingthat all private companies suffered huge losses, but again, only LIC earnedprofits. It can be said that, LIC is the only life insurer in India that isfairly settled but the market share of LICI is decreasing day by day.

Privateplayers play a rivalry role in the insurance market. Further, it is observedthat there should be a large gap between new business premium amount andrenewal premium, but in case of Indian insurance business, this gap is toonarrow. Moreover, the operating expenses of both private and public players aretoo high which needs to be minimized.Dave (2012)has concluded that among customers of life insurance companies, male and femalehave not significantly different expectations with regard to the contents ofadvertising. On the other hand male and female satisfaction for agent’sservices is significantly different. The study also revealed that salariedpersons, housewife, businessman and farmers expectations for contents of advertisingare significantly related.Gulati et al. (2012) have concluded in that there exists a significant perceptual differenceamong customers regarding overall service quality with their respectiveinsurance companies.

With regard to gap analysis of customers’ expectations andperceptions, it is found that the dimension of responsiveness accounted forhighest gap score following by Reliability and Tangibility which depicts thatinsurance employees are less responsive to customers’ needs. Further it isconcluded that the customers are less satisfied by the services provided byinsurance companies. The gap between desirability and availability is analarming bell for some insurance companies.

Jain and Munot (2012) have concluded that a large number of households are not aware of theimportance of being insured and this awareness is found to be comparatively alittle better in households where members are insured rather than householdswhere members are not insured. Also, the misconceptions are also found to behigher in uninsured households.Kumar and Kumari (2012) have concluded that the existing public insurance service providersshould remain competitive by doing things better and faster, and by ensuringcost effectiveness with performance. Large numbers of initiatives have beentaken by these public sector companies to compete with private sectorcompanies.

But still the public sector companies need to reassess their presentstatus after having modified their approach & philosophy in the post- reformperiod. Further it is concluded that today, in this liberalized world, in orderto sustain them, the insurance companies have to ensure quality products at acompetitive price. Companies can lower the price of the product by reducing thecost. 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 thetimely and satisfactory service along with maintaining their reputation andgoodwill.

The companies should pay more attention in timely and hassle freesettlement of the claims. Further customer relationship management should be ofutmost importance for such companies. Also, ‘Brand Loyalty’ has been ratedlowest among customers while selecting and purchasing insurance product whichsignifies the healthy competition among the insurance industry.Shameem and Gupta (2012) have concluded that Life insurance companies in India require newstrategies in order to survive and survive successfully.

Companies instead offocusing only on improving the variety of products needs to focus on targetingnew segments and implement innovative strategies in order to achieve sustainedgrowth and ensure profitability of business as well as growth of insurancecoverage.Sridevi (2012)have identified certain major factors which play vital the role in developingconsumer’s perceptions towards Life Insurance Policies. These are ConsumerLoyalty, Service Quality, Ease of Procedures, Satisfaction Level, CompanyImage, and Company-Client Relationship. Further study concluded that customershave positive perceptions towards life insurance policies.Pramod Kumara Singhal (2013) studied the service quality in Insurance sector takingprivate companies of Haryana State.

This study was based on the SERVQUAL modelcovering 500 customers of private insurance companies of 7 districts ofHaryana. The study concluded that the people are still carrying a negativeimpression towards the private insurance companies. Šebjan,U., & Tominc, P. (2014) studied therelationships among components of Insurance Companies and Services? Qualitythrough SEM approach. The sample size was 200 Slovenian users of insuranceservices. The results indicated that higher perceived innovation of insurancecompany was associated with higher perceived reputation of insurance company.

Shamsher Singh et al., (2014) studied the customer perception towards Service Qualityof Life Insurance Companies in Delhi NCR Region.Qureshi and Bhat (2015) in their study of service quality, customer satisfaction and customerloyalty in LIC in Srinagar district indicate that there is a service qualityshort fall in all the six dimensions of service quality with PersonalizedFinancial Planning being the most important dimension of concern, followed byCompetence and Assurance.