Service Quality, Customer Satisfaction and Loyalty: Australian Car Insurance

Car insurance is one of the fastest growing types of insurance since it is mandatory for car owners and drivers in most countries to own insurance. Car insurance market is so competitive and it is mandatory in most countries; therefore, high quality service in the insurance industry has become an important concern. Through high service quality and customer satisfaction, companies are able to gain loyal customers who normally will continue utilizing the service or recommending it to other potential clients. In addition, service quality, customer satisfaction and loyalty guarantee profitability, therefore play pivotal roles for the insurance companies in this market. The purpose of this study is to measure service quality, customer satisfaction and loyalty, and assess the relation between these elements in the Australian car insurance industry. The SERVQUAL Scale was utilized to measure service quality, customer satisfaction and loyalty. As the research intends to understand the various relations among these variables, the research analysis includes the correlation study between the constructs.