The Relationship between Service Quality, Perceived Value, Corporate Image, Complaint Behaviour, Role of Agent and Customer Satisfaction in Life Insurance Services in Klang Valley, Malaysia

Abstract

The life insurance industry in Malaysia has developed since the British colonised Malaya era in the 18th century. The industry contributes to the economic growth in GDP by collecting the premium paid by the policyholders and, in return, promising a sum of money to pay to the policyholders when unfortunate events occur. Customer satisfaction is an important factor for policy owners to continue to pay their premium on time and to purchase new insurance product in future. The objective of this research was to examine the determinants of customer satisfaction in life insurance services in Klang Valley. From this study, 399 responses were collected through online questionnaire surveys. The questionnaire data was analysed using SPSS version 28. Demographic analysis, reliability test, normality test and coefficient test was conducted. The Pearson correlation coefficient analysis was used to assess the link between the independent variables (Service Quality, Perceived Value, Corporate Image, Complaint Behaviour, Role of Agent) and the dependent variable (Customer Satisfaction). Overall, the respondents were largely satisfied with their life insurance companies with customer satisfaction. Based on the output data, all five hypotheses in this study were supported, showing that service quality, perceived value, corporate image, complaint behaviour and role of agent significantly and positively influence satisfaction among life insurance customers in Klang Valley. Therefore, insurance organizations should pay attention to all factors mentioned in this study when offering services to clients because customer satisfaction translates into company profitability and customer loyalty. As a result, rigorous training courses should be provided to all company employees, especially insurance agents, who are the critical role as coordinator between the insurance company and clients.