INFLUENCE OF THE QUALITY OF INSURANCE COMPANY SERVICES TO THE LOYALTY OF INSURANCE SERVICE USERS

Abstract

The quality of services is a key factor for the success of organizations in the service industry. The provision of quality services in insurance companies is the result of two key factors, namely the quality and behavior of human resources and the quality of the material aspects of the services. Namely, the quality of insurance services consists of the following five dimensions: quality of the material aspects of the service (tangibility), reliability (consistency), responsibility, reliability (security) and empathy. These dimensions of quality are the key elements on which the satisfaction and loyalty of insurance service users depend. Specifically, the quality of insurance services affects the satisfaction of insurance service users, and satisfaction in turn affects their loyalty (further use of services from the same insurance company).
The aim of this paper is to determine the impact of the quality of insurance company services to the loyalty of insurance service users. For this purpose, a survey was conducted that included 200 insurance service users from different insurance companies operating in the territory of the Republic of Macedonia. The sample was random and included insurance service users who differed from each other according to gender, age, level of education and the type of insurance services they use, and the survey was conducted with a survey questionnaire that contained closed-ended questions (with pre-specified answer options).
To determine the impact of the quality of insurance services on the loyalty of users of those services, the correlation method, the linear regression method and the multiple linear regression method were used. Namely, as first, the impact of each dimension of insurance service quality on customer loyalty was analyzed using linear regression, and then the multiple regression analysis method was applied to determine the cumulative impact of all five dimensions of quality (the aggregate quality of the insurance service) on customer loyalty. Based on this, it was determined that there is a very strong and directly proportional relationship between the dimension of tangibility of insurance service quality and customer loyalty (the correlation coefficient is 0.914; the determination coefficient is 0.836; p = 0; the coefficient B = 1.306); the dimension of trustworthiness and loyalty (correlation coefficient 0.768; coefficient of determination 0.589; p = 0; B = 1.600), the dimension of responsibility and loyalty (correlation coefficient 0.860; coefficient of determination 0.739; p = 0; B =1.356), the dimension of persuasiveness and loyalty (correlation coefficient 0.924; coefficient of determination 0.854; p = 0; B = 1.127) and the dimension of empathy and customer loyalty (correlation coefficient 0.754; regression coefficient 0.568; p = 0; B = 2.267).
If we analyze the cumulative impact that all 5 dimensions of the quality of the insurance company's service have on customer loyalty, it will be noted that it is much greater than the impact that each individual dimension of the quality of the insurance company's service has. Thus, the cumulative correlation coefficient is 0.953, which means that there is an almost ideal correlation between the quality of the insurance service on the one hand and customer loyalty on the other. The coefficient of determination is 0.909, which means that 90.9% of the customer loyalty of insurance companies in the Republic of Macedonia is the result of changes in the quality of insurance services. All 5 dimensions that make the quality of insurance services are significant predictors of customer loyalty because in all casses p ˂ 0.05.