Relationship Quality in Motor Insurance: A Study of Policyholders' Perception

Sherry Singla; Dr. Harpreet Kaur Sawhney

Sherry Singla
Dr. Harpreet Kaur Sawhney

Keywords: Claim settlement, Satisfaction, Loyalty, Motor insurance, Relationship quality

Abstract

Purpose: The present study makes an attempt to investigate the interrelation among the dimensions of relationship quality (i.e., trust, commitment, communication, and conflict handling), satisfaction regarding claim settlement, loyalty, and switching intention of policyholders of the highest premium-generating channel (among the other types of insurance product, like fire, marine, cargo, aviation, engineering, liability, crop, credit, and miscellaneous insurance policies) of the general insurance sector, i.e., specifically motor insurance in the state of Punjab.

Methodology/ approach: Primary data was collected from 400 respondents by using a self-structured questionnaire. The proposed research model was tested by using the Structural Equation Modelling (SEM) in AMOS 23.

Findings: The results of the research revealed that the proposed model of the study was supported by all the hypotheses, i.e., there was a positive and significant relationship between relationship quality, policyholders’ satisfaction towards claim settlements, and their loyalty to the insurance company. The findings also exhibit that policyholders’ loyalty had a negative relation with the switching intention of the policyholders.

Implications: The study can be highly beneficial for motor insurance providers as there is a vast market still untapped, as 57% of the total registered vehicles in Punjab are still uninsured (as per IRDAI reports). This study will also be beneficial for insurance companies, agents, surveyors, and policymakers as the perception of the motor insurance policyholders has been deliberated upon.

Originality: The current study delves deeply into the existing literature as it provides insights into the policyholders’ relationship quality, satisfaction regarding claim settlements, loyalty, and their switching intention in the motor insurance sector. Although previous researchers have studied these concepts in various other service sectors, the present study bridges a gap by providing a comprehensive study in the motor insurance sector of Punjab.