Service quality in the Maltese motor insurance industry

Abstract

Purpose: This paper is intended to analyse the service quality of motor insurance companies in the Maltese industry, focussed specifically on private motor policies, to continuously strive to differentiate what they offer to better fulfil customer demands. Methodology: The SERVQUAL model as developed by Parasuraman, Zeithaml and Berry (1985, 1988) was adopted to evaluate service quality, by measuring the discrepancy between the customers' expectations and perceptions. The perspective of three different participants; the general public as the consumers of motor insurance policies, the insurance company management and the companies' front-line employees was measured through questionnaires to identify insurance company shortfalls and any mismatch between the latter and motor insurance customers. Findings: It was identified that insurance customers who claimed in the last five years had a lower perception of their insurance company and higher expectations. Results also showed that Maltese insurance companies had a number of shortcomings which needed to be identified and tackled, especially in the dimensions which resulted to be the most important to customers i.e the reliability dimension followed by the responsiveness dimension. Research Limitations: This study was made taking five major motor insurance companies as representative of the Maltese insurance industry. This is a first attempt were future research can be more comprehensive with a larger number of insurance companies and higher number of iii participants involved in all the three questionnaires. Gaps between the managerial and front line employee responses can also be determined. Practical Implications: This study benefits the motor insurance companies as it highlights the gaps between what they are currently offering and what the customers expect. This can benefit both parties with more satisfied customers as a result of higher company performances. Value: Although insurance might not seriously invest in service quality at the moment, considering that this service sector is at its maturity level, offering service quality is a unique preposition which companies can adopt to retain customers and hold a top of mind reputation in their minds.